White labeling is how established introducing brokers take their business to the next level. A Forex white label means that a well recognized forex institute is willing to permit you the use of their name and a variety of other perks such as free trading software in exchange for a relationship with your clients. Of course for every Forex broker reputation is paramount so not just anyone is suitable to receive a white label. First you need to demonstrate that you are trustworthy and have access to a decent sized roster of clients.
What are the advantages of white labeling?
For the broker the advantage is quite straightforward, they gain access to a new roster of clients and can profit from their trades. The introducing broker receives a variety of benefits. First of all by bearing the name of a well recognized Forex broker they can command a lot more respect and influence in the market, not to mention attract a greater number of potential clients.
Introducing brokers tend to learn a lot from their white label. Many traders only work as introducing brokers at the beginning of their careers and as such they benefit a lot from the guidance of large brokers. They may also gain access to more valuable information due to the exclusive contacts they build through their white label.
Forex white labeling is really all about acquiring clients. For this reason successful IBs really need to have their contacts prepared before they approach a broker about a white label. Typically then, successful IBs tend to come from backgrounds such as financial services firms, trading firms and just about any vertical that brings investors in contact with each other.
With a good Forex white label you should find you don’t have to look far for new clients, they’ll come to you.