Creating a product from scratch is not an easy thing to do, especially if you are limited both in time and finances. To develop a product from scratch, you will need an experienced IT team, financial resources, and time. It’s especially difficult if the project goes beyond your area of expertise, which means you’ll need to spend money on training, research, and development. In this case, taking a ready-made or White Label solution and focusing on promoting it is easier and more profitable. Let’s consider the main indisputable advantages of the White Label model, which help brokers optimize their business process and increase the flow of clients.

Meanwhile, WLs are at least experienced in attracting and maintaining a good partnership with third parties, as well as managing and satisfying their clients’ needs. Given the unique advantages and disadvantages of full and partial white label solutions, it is crucial that your Forex company chooses the right one. After you complete our short form, we’ll first discuss with you your objectives and ideas; then, recommend the best solution – the one that will give your branded FX business the best chance to succeed. For a more specific list of high-probability candidates, you can access the this section of our website. In our “IB Guide,” we also provide a detailed list of businesses that are well-positioned to succeed in the IB space. As far as fees are concerned, MetaQuotes charges standard upfront and monthly fees to all licensed brokerage firms for each MT4 white label they sub-license to their referral partners.

Therefore, this model is preferred by many retailers since it helps them compete with more huge brands. Imagine, a client approaches you to develop a website for their real estate business. You are running a digital marketing company, and you are ready to outsource a team to take care of the development process. Here, you can outsource a well-experienced workforce, represent them as your in-house team, and allow direct contact with the end client.

Both companies will own the product, but the company’s brand that contributed most to the development or marketing will be used as the leading brand. This means that if you want to spend more time building your brand with new products, you can do so while still generating revenue through white label partnerships. The same is true if you want to scale down temporarily while improving existing processes or infrastructure within your company and then scale back up once these improvements have been made. White Label (WL) has a different aim and a more complicated system than IB. WL has its own forex brokerage that uses its brand rather than only referring clients to the Main Broker. Forex WL business cooperates with an existing forex brokerage firm based on an agreement with the brokerage to get access to the broker’s trading platform and liquidity under their own unique brand.

On the other hand, you are not able to specify or control service offerings. Luckily, white label companies are now offering more and more choices to meet partners’ demands. Many other businesses working in advertising, agencies, web development corporations, or even small digital marketing agencies reach That! Company with an attempt to have it provide one or all their various services to an end client.

In return, they will also gain access to your existing customers and revenue streams which means that both parties benefit from this type of partnership. Ultimately, the decision of which brokerage model to select lies in factors such as initial capital investment, risk management, and vision. While Introducing Brokers are in for an easier ride initially, it is the white label brokers who can establish themselves as a force in the market, with a view to becoming the prime brokers of tomorrow.

Hopefully, this post is helpful for you in identifying the two models and find out which one is the most suitable for your business. If you have any questions, be free to contact us or leave us a comment in the section below. Share this post with your friends if you find it interesting and visit us for more.

Put an SLA (service-level agreement) in place to lay out the terms of the white label partnership

Obviously, the price of opening a full white label brokerage would be higher than an IB, and the procedure would require greater time and effort. Usually the broker will give the IB a unique ID link that will track new customers that the IB introduced, and will also grant him access to the broker’s promotional materials. More sophisticated IBs will create their own marketing campaigns for the broker and also manage sales and retention for him. Some brokers will give their affiliated IB a unique link to track new clients and access a particular area, allowing the IB to download promotional materials to start targeting clients.

  • They are allowed to put their logo on the trading platform, determine the amount of spread, and manage their clients.
  • Do check out this article, where we have debunked a few common myths about white label services.
  • Other categories include home care (6%), hot drinks (6%), soft drinks (5%), and beauty (3%).
  • White label partnerships can help you reach new customers who wouldn’t otherwise have known about your white label products or services.
  • Most of these businesses have already figured out how to streamline their operations and processes to focus more on their core competencies.
  • A future study can examine the effects of removing the numbers from the fully labeled version.

A business owner purchases a trading platform, being not dependent on a primary broker. ColorWhistle has been offering white label services for almost a decade and it is a one-stop center for white label services. We are a team of expert developers, designers, marketers and more who offer excellent services to you by understanding your objectives and business requirements. As the white label agency and the end client gets in contact, it is a win-win model.

Pricing Model

Eventually, both models have strong and weak points, and a newer broker should decide which solution corresponds with his (her) goals better. Beginner brokers are charged fees (fixed price and/or fees from trading volumes). I am able to diversify my knowledge at CW as I get the opportunity to write for various industries. What I love about writing is the research part when I can explore on the data while googling. I am also experienced in playing with words for the WooCommerce plugins and eCommerce platforms.

The White Label model allows you to access a ready-made brokerage exchange infrastructure and start using it for your own purposes, which significantly saves time, money and effort. Another challenge with a white label partnership is that it often involves sharing control over pricing strategy with another company (which is something that many e-commerce businesses aren’t comfortable with). When you sell your white label products through a wholesale distribution channel, you have to give up the margin on the sale. In other words, for every dollar you make on one of your products, you will make less than a dollar on that same product when it’s sold through a retail distribution channel. This is because retailers typically take 50-60% of the sale price as their margin.

This business model is part of the Business Model Patterns printed card deck.

With white labeling, you can get a finished solution customized for your business needs within a short time, one month tops. At the same time, white-label products usually come at a lower cost of production, since it doesn’t require extra investments into the development process. Both models imply production by a third-party manufacturer and further reselling with custom branding by another company. For example, a retailer gets a private label product to offer a similar style of outfit for a lower price compared to other well-known clothing providers. In this case, the price is a factor that helps a retailer to become more popular than competitors. Because of this, a typical retailer often goes to a private label manufacturer since the final product helps to compete with more recognizable brands.

Especially when you are working for a startup company that is little-known by the public, the white label model is beneficial as it doesn’t require huge investments or experience. To stay ahead in the market, you need to make smart moves on your business, and one of them is this white label partnership. Get partnered as this would eliminate your stress in hiring an in-house team to offer the services requested by your client. Do check out this article, where we have debunked a few common myths about white label services. You can have a full or partial white label partnership with another brand or company, which means you can use their name and logo for your products or services and vice versa. There are also hybrid models where the two companies will only collaborate on a particular development or service aspect (e.g., marketing).