The efficiency behind White Label solutions for brokers
Author: Baiana Kashaeva
Many aspiring brokers choose to enter the market through a White Label (WL) provided to them by an experienced company with expertise in both technology and business aspects of brokerages. Today we will talk about the top reasons that make a White Label a logical and efficient choice for all beginners.
1. A ready-to-go business solution
Brokers who choose a White Label package essentially receive a key to a comprehensive business solution. A WL goes far beyond a branded terminal and a platform. It covers the entire life cycle of the brokerage, providing necessary tools for each process, such as risk and money management, monitoring, and client relations. What is more, this solution has already been tested by countless clients before and is foolproof.
2. There is no significant upfront investment
If a broker decides to start a company from scratch, they would be expected to purchase many licenses, such as trading platform and liquidity bridge licenses. The cost of each piece of software might not be that high, but it adds up to a large sum in total. With a WL, brokers typically pay monthly or annual subscriptions, which end up being a fraction of the cost of the licenses. Additionally, brokers get to utilise the provider’s hardware, making it an even better deal.
3. Tremendous time savings
Apart from being financially efficient, brokers that go with a White Label save themselves a significant amount of time that would otherwise be dedicated to selecting and evaluating all components of their future infrastructure. One of the benefits of a WL is that it essentially provides an environment as a service. All hardware and software products are cross-tested, fully compatible, and work consistently. Finding such a balanced solution requires technical expertise which a broker might not possess. So, a White Label enables brokers to keep their peace of mind and not invest time and money into technical evaluations and POCs.
4. Focus on business
Like we mentioned earlier, a White Label partner takes care of the technical side of things, giving brokers the freedom to fully focus on building a stable and prosperous company. With a WL, there is no need to invest time and resources into hiring the technical team and figuring out which hosts and software work best for your needs. So, a White Label allows brokers to focus on their core expertise and avoid making the same mistakes that many have made before them.
5. Quality technical support
No matter how perfect the technology is, you will occasionally need technical support. And in the world of investing, if things go wrong, they often must be fixed within a matter of minutes. Otherwise, brokers risk losing their clients’ trust and funds, or, in the worst case, they might face fines and bankruptcy. With a WL, brokers get top-level technical support without having to hire and train staff. It is very cost-effective and ensures quality service to the traders.
To sum up, a White Label saves lots of resources for aspiring brokers. It allows both new starters and experienced brokers to utilise the knowledge and expertise of the technology provider and provide services to traders under their own company name. If you are looking to become a White Label broker, we recommend starting with a business plan. It doesn’t need to be extensive and detailed but should cover all the basics:
- What are your primary business goals? Each WL provider has its own strengths, so your focus and targets will affect which company you will partner with.
- Your target audience and markets where you’d like to operate.
- Legal requirements and regulations on your selected markets.
- Your financial plan and calculations on how many months you can afford to operate with little or no revenue.
- Details on your branding and positioning.
And, of course, it is crucial to find the right technology partner. Look for someone who can give you a comprehensive set of solutions, which will scale with you and provide custom products for your needs.
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