Forex White Label: Pros and Cons
At the initial stage of starting a brokerage, you will definitely have a lot of questions regarding the platform. However, there are many easier and faster ways for a start-up brokerage to get to the market. To avoid a headache, one can rent a part of the server from any company that offers such services. In other words, to begin a white label company, you can hire the services of a company who offers you forex white label brokerage.
What is a White Label?
The white label simply is the process in which one firm buys another firm’s product and then marketing it in the market with his brand name. A well-settled company, that have years of experience. They should be experienced in each and every technically aspect of the platform. This will also provide you with the client terminal and mandatory admissions. As a result, you don’t have to invest in high initial for buying your own complete trading platform. You can hire the services of the mt4 forex white label and can quickly pay a monthly fee for a WL. Also, it is comparatively small set-up fee for installation and configuration of your server side.
Pros and Cons of a White Label
It is a well-known fact that every platform and devices have its own benefits and limitations. So, the forex white label program also has some advantages and limitations.
Pros of a White Label
- Lower entry barriers: Purchasing the whole server is a challenging, costly and risky effort. You should be well aware of every issue related to the trading market before you plan to start your own brokerage with buying your own platform. However, with the White label model you can have the same position but with lower initial costs. You don’t have to invest in high initial for buying your own complete trading platform. You can hire the services of the MT4 and can quickly pay a monthly fee for a white label.
- Easy maintenance: By hiring the services of the white label you don’t need to deal with renting servers. Moreover, you don’t need to know the technical trading platform when you hire their services. Also, you don’t need to go deep into trade dealing specifics and trading platform configurations before starting a white label. Any of these things will be done by the company who provides you with a white label.
- Easy to use platform: It is not a complicated or sophisticated platform to trade for the beginners. It is actually one of the most accessible and comfortable platforms to trade on, especially for the novice traders. All that is needed is, to practice and get used to the tools of the white label platform. In few days, you will be comfortable in dealing with this trading platform.
Cons of a White Label
- Dependence on platform owner: When you are renting a server, you will be using other companies brokerage, so you will not be able to configure all of the available MT4 server settings. Moreover, you can also not access all the plug-ins or add-ons from third-party developers, as this may alter the performance of the entire MT4 server. This limits your working when you rent a server.
- No economies of scale: There comes a time when your clients base grows bigger, and at that time you need to pay more for your white label services. Therefore, it is a high time to buy our own trading platform because the rent is more. However, this problem can be solved somewhat by using technological solutions. The reason being, the technological solution doesn’t require installation on the server and only need managerial access to the platform.
Conclusion: Summing up, the significant downsides of a white label solution such as lack of control and dependence can be overcome only to some extent. It is important to rent the platform in the initial stages as have to invest low in the initial stages of a business. But as the business grows, and more and more clients are attached then you can buy your own trading platform. But make sure you hire the services from a reputable and reliable company to get succeeded in the business.