Forex white label introducing brokers tend to be a lot more successful than their lone wolf counterparts. There are a variety of reasons for this and the precise factors vary from broker to broker; before we delve into these reasons let’s take a moment to remind ourselves what a Forex white label is.
Trading Forex involves buying and selling currencies with the intention of profiting from rises or falls that are accurately predicted. While many professionals make a handsome living from online trading, others prefer to make money from Forex in other ways. A Forex white label introducing broker for example does not trade currencies, instead they recruit other people who are interested in trading and help them to launch and manage their careers.
Many traders prefer to work via an introducing broker because they desire the extra attention and guidance that an introducing broker can offer in comparison to a larger, more anonymous online broker. It is common for an introducing broker to share contacts and valuable trading tips with their clients. New traders have a lot to learn and they appreciate any advantage they can get.
A Forex white label means that the introducing broker is affiliated with one brokerage exclusively. The advantages for an introducing broker who chooses to operate under a white label are similar to those for a client who chooses to trade via an introducing broker.
The introducing broker receives a considerable boost in credibility as soon as he affiliates with a respected brokerage. The brokerage will share valuable contacts with the IB and will allow them to operate beneath the banner of their branding and name. The IB has increased pull in that he can now offer the white label’s services as his own placing considerable resources at his disposal. Finally new IBs often have a lot to learn about Forex as well and their brokerage is the best party to teach them.