How to launch a White Label broker?

Author: Alexey Kutsenko

The trading platform is the heart of any brokerage company and all aspiring brokers have questions about it. These questions range from how to configure the platform, how to connect prospective traders to an online traders' room, to how to set up a payment system, and many more.

What if we told you that there is an easier and faster way to get to the market as a start-up broker? It is possible to avoid the headache by renting a part of the server room from a company that offers such services. In other words, you can start a White Label (WL) company quickly and easily. Now, let's get into the main focus of this article.

What is a White Label?

There is no single definition for what a White Label is. However, we can say that a White Label is an established company that already owns a platform and has enough technical and technological experience to set up and maintain the seamless work of the platform. This company is able to provide its own MT4/MT5 server, a branded client terminal, and all necessary admissions required for smooth operations.

As a result, you can avoid high initial costs associated with purchasing a platform and start a brokerage instantly. With a WL, clients pay a monthly fee and a setup fee for installation and configuration of their server end. These fees are just a fraction of the cost of a full platform.

What are the pros and cons of a White Label?

Several advantages come with becoming a White Label broker. Key among these advantages is that the launching process is expeditious. Second is the benefit of a lower launch cost. This is made possible because the company providing you with the WL takes care of renting the servers, trade dealing specifics, and configuration of the trading platform. While this might sound like a dream, fact is, the more clients these companies get, the higher monthly fees will become. Sooner or later, every business reaches a breaking point where they pay just as much, if not more, for the rented infrastructure.

Another downside of WL is that servers typically host data from multiple companies. While they might be perfectly fine in terms of security and privacy, there are underlying potential issues with such a situation. At some point, your company outgrows the standard setup and starts demanding individual solutions. This might include plugins, add-ons, or simply a custom MetaTrader server configuration. With several businesses on a single server, there will be increased difficulty in running individual upgrades. There is also a risk that your processes will be affected by a poorly executed upgrade of your neighbours.

If your company is hosted on a shared server and you need to have custom tools in place, the solution here might be running applications that do not require installation on the server but only need managerial access to the platform. At TFB, we provide several solutions to this. They include:

Another way to avoid the technical hassle is to find a WL partner with an inclusive technology. Their offer should come with all basic software needed for smooth business operations by a broker. TFB offers a White Label package that already has a multi-account management (MAM) system solution, a bridge to liquidity, and lots more.

Would you like to start a White Label brokerage? TFB offers a White Label package containing a complete set of solutions required to kick start your brokerage. All our products are developed internally and are fully compatible with one another. The TFB ecosystem includes standard applications, a bridging solution, and plugins that target specific needs. Thanks to the smart load balancing, the MetaTrader server does not get overloaded, and our clients enjoy seamless trading.

For more information, please email us at sales@t4b.com.

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