As more and more people with access to fast and reliable internet come online, the interest in forex and online trading continues to increase. As a result, daily trading volumes in the forex markets have climbed to over Seven Trillion USD in 2022, a trend which is almost certain to continue and which accounts for the growth in forex white label solutions.
The reasons behind this rise in daily trading volumes are varied. As we already mentioned, one of the driving forces behind the trend is the number of people coming online with reliable internet connections. A growing middle-class with disposable income also contributes to the demand for trading services. Compared to even a few short years ago, more and more payment solutions are available for retail investors to fund accounts and start trading the markets.
It’s not unusual to see brokers booking Trillion dollar volume months. What used to be a rarity has now become almost commonplace. Nobody bats an eyelid anymore as the figures continue to grow exponentially.
Finding a reliable solution for a new brokerage can be complicated in a competitive marketplace. There is much more involved than just getting a license for a trading platform and installing a fast trading server. In addition, traders nowadays are much savvier than they used to be, with far more complex needs and demands.
Although getting started as a new broker has some pitfalls, startup costs are one of the primary considerations to keep in mind. These startup costs are one of the driving forces behind the growing popularity of white label forex setups.
Forex White Label Solutions
So what exactly do we mean by the term Forex White Label?
A white label solution for your forex brokerage will include all the modules necessary to run your operations on a licensed basis. These modules can include:
- Forex CRM
- Client Onboarding systems
- KYC Module
- Trade Liquidity
- Trading Platforms
- Risk Management Solution
- IB and Affiliate Solution
- Bonus Automation Solution
- MAM/PAMM Solution
- Trading Signals
- Copy Trading Solution
- Payment Processor (PSP) Solutions
Typically, your white label partner will brand these modules to match your corporate logos and color schemes.
Some WL solutions can also include licensing. Your operations would not have an outright license, but your provider will register you as an authorized domain. This regulation setup can solve the issues for jurisdictions with high licensing costs. Still, it does open you to potential regulatory abuses by other brokers on the same shared license.
A forex white label solution typically includes branded websites, mobile apps, and technical support.
These white label solutions usually come with very affordable setup fees and monthly processing and support fees, depending on the number of traders you have, their trade volume, and monthly transactions.
The result is a fully-functioning forex broker entering the market with a complete lineup of forex products and services. Using a white label solution takes much of the complexity away for brokerage companies. Business owners get up and running with minimum delay with a turnkey solution of award-winning products.
White Label Forex Products
Forex Trading Platform
At the heart of any retail forex brokerage lies your trading platform, with the gold standard being the Metaquotes family of platforms, namely MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Unfortunately, while these are arguably the most popular trading platforms for retail investors, costs for startup brokers can be prohibitively high.
Licensing fees for the MetaTrader platforms can run as high as a $100,000 setup fee plus monthly fees above $15,000.
That is a lot of upfront investment for a new operation, which is why many new brokers prefer to start their operations on a white label basis. Then, once your business shows a steady profit, you can move to a full license setup.
The hub of your business is, of course, your forex CRM (Customer Relationship Management) software. Your CRM holds all your client details, including deposits and trading history. The CRM is where your sales and retention departments will get their daily lead reports. In addition, the information in your CRM drives your back office, marketing, dealing, and risk departments.
The is no short supply of CRMs to choose from, and the market includes several excellent systems. The problem is that many of these CRMs are not specific to the precise needs of forex brokers.
Your brokerage operations will call for onboarding, KYC and AML processes, regulatory requirements, and financial transactions for deposits and withdrawals.
These specialized requirements mean specialized systems. A forex CRM designed specifically for forex brokers will include all these features and be part of an intelligent forex white label solution.
Your white label solution will also include Payment Processor (PSPs) integration. These existing integrations reduce the work you’ll have to do to source your own PSPs. Of course, there may be processors you want to use that your forex white label provider won’t support natively. However, most providers will be willing to integrate new processors, but be prepared for this to be an extra cost!
Traders expect a wide range of tradable assets from their broker. You may have difficulties acquiring new clients and retaining existing clients if you don’t support popular products like CFDs and Cryptocurrencies.
Forex white label solutions will include support for these popular products. Your solution provider knows the market demands, and any professional WL system will support all the most popular instruments and keep up to date with new products.
Risk management is one of the most crucial areas that can make or break your brokerage operations. In extreme market conditions, a single event could be enough to put you out of business.
Your white label choice should include a robust and battle-tested solution for your risk management. One such proven solution is the Plugit Dynamic Margin Module. Powering over one hundred leading brokers, the Plugit Dynamic Margin Module is feature-rich and fully customizable with automated rules for future events from the economic calendar.
In addition, a forex white label solution can include support for additional modules such as PAM and MAMM accounts, IB and Affiliate systems, Bonus Automation Systems, and Trading Signals and Copy Trading Solutions.
Plugit has been developing cutting-edge forex broker solutions since 2012. As a result, we have a well-deserved track record for delivering innovative products backed up by some of the best support in the industry.
Why not get in touch with us today for a no-obligation consultation? We can help take your business to the next level!