White label Forex: This is when a company buys another company´s product and makes all the marketing activities as its own.
For example, a company that produces laundry soap sells the product to Store F and then the soap adopts the brand of Store F´s label.
In the foreign exchange currency market – Forex, white label is used to rebrand trading platforms, software and other services that brokers could offer.
To star your own brokerage firm it would be necessary to take a look at all the costs and expenses that you will need to cover. A white label partnership could diminish those expenses.
The white labeling is valuable for the seller of the product and for the buyer as well. For the sellers – those who create the product- selling their software and platforms provides additional income. The advertising that is made by the brokers and the traders might try and test their platforms, in that way they will gain popularity.
For buyers, like brokers or banks, white label Forex is an attractive way to save money since they won’t have to invest in the development of a new product. They can buy a software or platform and ask to the seller to customize it to make it look like it is made by the buyer.
Most brokers offer white label for their clients that want to create their own online brokerage; which will allow them to earn commissions on their costumers’ trades. They will obtain their own trading platform and all the tools to monitor the customers and commissions. And this is with a logo designed just for them. The company that sells the white label is going to be in charge of technical issues and will provide customer service. This could help to create better relationships between the client and the broker.
Besides, white label Forex is not a free service; it has a variable cost that depends on the necessities and the services that will be provided. It is a good idea to check how much it can cost by getting everything separated: the cost of designing a logo, creating a website and the cost of each trading platform and software besides the management, customer service and technical service. Usually, it is cheaper to start white labeling.