The forex industry provides opportunity and promises riches far beyond other professions. It attracts entrepreneurs and traders from all walks of life. Over time savvy practitioners identified an influx of people wanting to start new brokerages to capitalise on this huge opportunity.
However, entering the market usually requires vast sums of money and technical know-how. The competition is undoubtedly fierce, but there are ways to help level the playing field.
Partnering with a white label service provider is one exceptional method.
Let’s find out more.
Popcorn Technology is a London based organisation who specialise in helping start-up brokerages succeed. Here are some of the most common questions put to their team.
What is a forex white label provider?
A forex white label provider is an organisation that has built systems and infrastructure for other brokerages to use. These systems are brandable and can be adapted to align with the distinct characteristics of the user brokerage. The technology is backed up by a team of experts who can help run the software and provide support and direction. It can make the transition from beginner to expert brokerage much more straightforward.
Is it better to develop proprietary software?
Purpose-built software is excellent, but it is not cheap, and it very rarely works perfectly in the early days. The software usually requires additional costs such as tech guys and support staff that were not in the budget initially. Unless the founder has the time and inclination to continually operate and update the system, tech guys will become an invaluable but expensive burden.
As a brokerage grows infrastructure such as servers will need to be acquired. If capital is not a problem, then custom software is a fantastic option, and many brokerages should aspire to have it and will gradually evolve in that direction anyway. However, the reality is that the vast majority of founders do not have access to unlimited capital and therefore, must spend their cash much more economically. White label services are not free, but they cost significantly less. Furthermore, infrastructure and maintenance are the partner company’s burdens, leaving you to concentrate on other essential business functions.
Will white label products be difficult to use?
There will be a learning curve regardless of the software you end up using. However, competent white label partners have identified the common pain points and have developed methods to help new brokerages navigate these areas quickly. Some partners have a dedicated start-up team whose sole purpose is to guide new brokerages in the early days.
Is MT4 white-label?
MT4 is the most common platform used among forex traders. White label partners understand that traders are loyal to the platform they use, and MT4 works extraordinary well. It is reliable, robust and provides all the tools necessary to get the job done. Therefore, an excellent white label provider will ensure MT4 is part of its offering and will have built all its additional services and tools around it.
How long does it take to get started?
Using white label services takes a comparatively minimal amount of time. The software works out of the box, and all the processes are clearly communicated. All systems will be operating within a matter of weeks and not months.