“When You See A Successful Business, Someone Once Made A Courageous Decision”
So, what is a White Label?
Most of us who in Forex market know what an introducing broker is, we also know about white labels. For those who don’t know, here is the simplest definition of a White Label. A Forex White label can be simply described as rebranding of products and services offered by the main broker under your own brand name.
I am an IB so can I be a White label?
To answer this, you should first know what kind of IB you are. Being an IB is not easy. To be a successful IB you need to have a good client base that can generate decent volume so that you earn your rebate. As the broking industry is volume driven it is important to know your strengths. As an IB you can use the company brand name to get clients attracted to you but at the same time the cost of IB setup is zero. Therefore, it is a smart way to run your business without investing much.
On the other hand, you lose the opportunity the create your own brand. In today’s world where we spend so much time and money on branding ourselves as the best in what we do— may it be salesman, fund manager, trainer, call provider, etc.— we constantly try to seek attention for our business. But what’s the point of all that when you are doing it for another brand.
Not every IB can be a successful white label but all successful white labels were once successful IBs. Think of it in this way: if you can walk, slowly and gradually you will learn to run. Similarly, if you become a successful IB, then you can learn how to be a successful white label.
Reasons to NOT be a white label:
- Lack of funds and the cost associated
- Lack of experience
- Loss of Tradeview marketing
How to know if One is a successful IB?
The word success has a different meaning for every one so it is difficult to answer that question.
However, like every successful person, every successful business has these following indicators:
- You should have more than 50 active trading clients at any given point of time.
- All the clients introduced by you should have at least a $5000 deposit size. The bigger the account size, the greater the chances of it having good volume and the clients will be active longer.
- You should constantly add new clients every month so as to increase your business and also to make up for the clients who lose funds while trading.
- Your income should exceed your expenses.
Which trading platform should I choose for White Label?
*The king of trading platforms is MetaTrader 4 by METAQUOTES. As most of the traders throughout the world use MT4 it is most logical to have MT4 for your white label.
Are there any other options?
YES, there are many other good trading platforms that you can get for your white label. Most of the brokers today provide in house trading platforms which are easily available for fewer fees and in some cases free of cost.
And then there are other trading platforms such as cTrader and Currenex, which are also widely used. These trading platforms are innovative, very user friendly and come with features which most other trading platforms fail to provide.
The key here is to know which trading platform your client would like to use. While most of the traders are MT4 users, there are people who have started using other trading platforms as they are more user-friendly. In this case, a platform like cTrader by Spotware is the perfect choice.
What about the cost?
To give you a brief idea- In order to set up an MT4 white label: Setup cost: $5,000.00 Monthly Maintenance fees : 1000$ These are the setup charges that the broker has to pay to meta quotes for the white label. Thus, this setup cost will be the same throughout the industry. If anyone asks for more than that then you need to check if the broker is offering you the right deal or not.
On the other hand, if you opt for cTrader white Label: Setup cost: zero Maintenance fee: $750 to $1000 You save on the setup fees which can help you get things started. As a White label you have to make the right decision for you brand to grow.
At first, the thought of having some other trading platform might not sound that appealing but it is the best way to start as the cost involved is less. If this business model suites you then surely you can have the MT4 trading platform in addition to the existing trading platform. The key here is to monitor your expenses, the less you spend in the beginning more likely you are to move forward.