The benefits of White Label solutions for brokers

Author: Anastasia Taganova

White Label solutions have always been appealing to brokers, and it’s been on the rise over the past couple of years despite all the difficulties that have shaken the market. The White Label (WL) model has many benefits and perks for brokerages, big or small, but there is still hesitation when implementing it in one’s own company.

That’s why today we will look at the key benefits that White Label solutions offer brokers.

What are White Label solutions?

Before diving deep into the benefits, let’s define a White Label solution.

Investopedia defines White Label products as those that are sold by retailers with their own branding and logo, but the products themselves are manufactured by a third party. An example would be parmesan cheese by “Great Value,” which is a private label of Walmart. Now, Walmart is a supermarket chain, and they don’t produce anything themselves but rather outsource production to trusted manufacturers and then put their logo on top of those products.

Similarly, in the fintech world, a broker would get a solution that consists of a selection of software only or software + hardware that is put together by a third party. The broker then puts their name on top of it, customises it to fit their unique needs, and starts operating.

White Label packages for brokers can mean different things. At TFB, WL offers would include a branded server, data feed, bridge connection, access to a pool of liquidity providers, flexible settings, and other elements. You can check out our WL page for more details if you're interested.

The benefits of White Label solutions for brokers

Now let’s look at what we came here for – the main benefits of WL packages:

Risk management

White Label offers risk reduction in several forms. First, you don’t have to invest as much as you would starting out on your own, so there is less financial risk. Second, you don’t need to spend time researching and testing multiple solutions, risking a loss of momentum. Third, there is always a tech partner at your side, ready to help and guide you, preventing you from making tech mistakes and jeopardising operations.

Cost reduction

Choosing the WL option means paying a fraction of the total cost of the infrastructure. Instead of purchasing the full cTrader license, for example, TFB WL clients only pay a small percentage of the total price. As for MetaTrader 5, where a complex license is required for every brokerage, the cost reduction is achieved by getting the package with everything else included. On top of that, the payments for most (if not all) WL packages out there are monthly subscriptions and not one-off upfront investments, so you can keep it in your OPEX and manage budgets more efficiently.

Faster time to market

Launching a brokerage is generally a good idea, but there are better and worse circumstances in which to do it. Let’s say you’ve spotted an opportunity, an untapped niche that you think you can penetrate. Launching a brokerage on your own can take months. Acquiring all of the licenses, securing enough capital, and building a tech environment are all complex processes. By the time you are done, if all goes well, the niche you’ve fancied might already be occupied by someone else. With WL – this would not be a problem.

Focus on business, not technology

Depending on your preferences, you can outsource the technical side completely to your WL provider or manage parts of it, such as hosting the software on your servers. Going with WL means that most of the technical due diligence and other work is done for you. There is no need to invest time in diving deep into the infrastructure, which leaves you with more space to explore new marketing tools, secure strategic partnerships, and focus on excellent customer service.

Professional technical support

Ideally, you should get professional tech support no matter what software you choose. With WL, though, it’s common that brokers are not as proficient with that side of the business. Hence, companies, TFB included, offer 24/7 support and consultancy to accommodate all the needs and queries that WL brokers might have. This means that you are even more protected in terms of your environment, which is very important since the brokerage relies heavily on the solutions running smoothly.

What to watch out for when looking at WL packages

Before we sign off, we’d like to mention the key points that are worth considering when picking a WL technology partner:

• WL provider reputation and portfolio. Have they been on the market for a long time? What kind of clients have they been working with? What do people say online? That’s not to say that companies that are only starting out are not to be considered, but you’d generally want to work with someone with extensive experience and knows what they’re doing.
• Customisation and integration opportunities. Regardless of whether or not you’re planning to customise your WL package and/or integrate other tools in it right now, – go with a provider that allows that. Down the line, you might want to change things up, and it’s best not to be locked in with technology that’s not flexible.
• Compatibility with the existing environment. If you have infrastructure in place, always test it fully before adding a WL package on top. Such tests don’t take much time (the TFB team can help you streamline the process if you’re going to try our WL packages), and they are always worth it. Even if things look good on paper, they might conflict in real life.

Final thoughts

White Label packages are great tools for brokers who appreciate their time and want to move fast. It’s not a one-size-fits-all solution, but it’s as close to it as it gets. From risk reduction to a more efficient use of your funds, WL is a powerful instrument for anyone looking to launch a brokerage in 2023 and onwards.