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FX White Labeling 101

Introduction

A little about me, my name is Ben Sadgrove and I’m the VP of sales with Tradeview Forex. My primary role is to introduce and integrate liquidity, clearing, and white label accounts with Tradeview. I’ve been in the FX industry for over 8 years and would to think of myself as very well qualified to help you understand the “in’s and out’s” if you will of what it takes to open an FX white label. I hope the below question and answers help you understand more definitively what’s involved.

What is a white label?

A white label or the act of white labeling is simply adding your branding, logo, or “skin” to established Forex broker/dealers software. In this case Metaquotes MetaTrader software. Your clients will download what they will believe to be your software and trade directly with you when in fact the client will be trading with the actual owner of the software, in this case, let’s say Tradeview who will clear the trades on behalf of the white label.

More information about how to start your own brokerage HERE.

Who white labels?

The typical owner of a white label is someone who has had a number of year’s experience in FX and who knows just how volatile the market can be. Perhaps starting off trading on his own account then moving to refer friends to a broker which is called an IB or Introducing Broker. The IB gets rewarded for referring clients by getting a rebate which is paid via the difference in the spread or sometimes an added commission. Over time the IB grows his networks and has referred over 100 accounts and through this is making good money with little to no risk but feels like he would like to have more control over his clients. Enter white labeling.

Should I white-label?

That is a question only you can answer but you will know when the time is right. As mentioned above if you’ve grown your network into a business and you want to take the next step then white labeling is the only logical one. I say this because to become you’re own FX broker/dealer takes substantial money, time, and expertise not to mention regulation and legalities. A white label is the best way to get your foot in the door to the biggest financial market on earth without paying for a full broker. FX trading volume has risen steadily over the years and is now at 5.3 trillion dollars a day. That is a remarkable figure and the reason why so many people want to be a part of it.

What’s needed for a white-label?

I get asked this question at least 3 times a week and it’s not a simple answer. First I would ask that you have a corporation already set up with a bank account then I would say the most important thing you will need to have is capital. Money is very important as it will be used to set up the actual white label plus you will also be expected to pay a monthly technology fee.

You will also need a website. A professional looking website is a key to a successful company, with so much competition out there the look and usability of your website is sometimes the deciding factor to whether a client trades with you or someone else. You will also need to be aware that a quality website takes time to develop as there is much information that needs to be imputed. Give yourself a good two to three months for a good site.

You may think that now that you have your new website and white label software that clients will just come to you but it’s not the case, you will need to spend money on getting your name out there. There are many ways to do this but when first starting out you will need to mindful that you don’t blow your marketing budget in the first few months of operation. I recommend starting out with a good SEO, Google Adword, and link building campaign. This will help place your companies name alongside other FX companies when a customer does a search.

Pitfalls?

There are a number of different problems that could arise but the major issue is acquiring clients as they are your lifeline to making money. Without a solid base of good-sized retail clients i.e. 5k and above you cannot expect to make any decent rebates. I recommend that you have at least 20-50 clients willing to start ASAP so that you hit the ground running.

What are the costs involved?

The cost of a MetaTrader 4 platform has a one-time setup fee of $5,000 with a monthly tech fee of $750. These costs are from the owner of the MT4 “Metaquotes” so be wary of any broker who charges you more.

Getting incorporated varies depending on the country in which lodge but expect to pay anyway from $1,500 to $5,000.

A professional website will cost between $2000 and $5000 depending on the content, design, and length of time it takes to build. There are of cause very cheap options out there but again spending more will help you in the long run.

What’s expected?

Should you decide to do a white label and have the necessary steps in place then the actual setup is quite straight forward and you should expect a fully integrated platform within 5 business days. You’re also most likely wondering how much can I make from setting up my own white label. Again this is totally up to how you promote yourself, your networks, and how you deal with your clients, remember good customer service is paramount should you like longevity in this industry. One bad review can hurt your company but if you do a very modest calculation of say 20 clients all trading 1 lot a day and being that there is an average of 22 trading days a month with a $10 rebate you are looking at $4,400 a month from a very small client base.

Can you help me?

Tradeview is uniquely placed to assist you at every step of the way, from helping setting up your white label to helping with offshore incorporation, alternative payment provider, and via our own website design company www.ilikewebsites.com we can help create a custom, professional website. Your website will feature your very own logo and contact details, links, product information, and software. All you have to do is sell; Tradeview will take care of the rest.

Tradeview can assist you at every step of the way to help be your own forex brokerage. For more information please visit this LINK. If you or your firm has associates that may be interested in trading financial products, Tradeview Forex Introducing Broker Program will provide you with everything you need to be successful as a Forex IB. As an IB you will earn rebates on every trade that your clients make, all you have to do is explain to people the benefits of trading financial products such as Forex, CFDs, and Commodities.

Getting started is easy, just contact our sales department at tradeview@rhino-report.tradeviewforex.com.

BEN SADGROVE
Vice President of sales

bsadgrove@rhino-report.tradeviewforex.com

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