As a result of the rising popularity of the forex market, a lot of business owners and entrepreneurs aspire to enter this lucrative space as forex brokers. This innovative business idea surely offers a lot of unique opportunities to those who have enough knowledge and funds to get started. Many think that they cannot compete against the rivals in the brokerage industry as they can never match the level of established brokers with a loyal client base. Perhaps, you are also procrastinating and pausing your plans due to the same reason or maybe you don’t want to take the risk by investing a huge amount of capital for the complex and time-consuming setup process.
But what if you get the guidance, technological infrastructure and ongoing support of an established broker to overcome all these challenges with ease? This is what you get while opting for a white label solution. The white label provider acts as a distributor of the resources and technology that they own and allows emerging brokerage businesses to offer it as their own after rebranding.
However, your success as a forex broker greatly depends on your business plan that outlines all the steps that have to be followed for launching your brokerage platform.
You’ll discover more about the white label and its functioning so that by the end of this blog, you can decide if the white label provider is a good option for you or not.
1.Select A Business Model
The first is selecting a business model for your brokerage business, based on the type of broker you want to become. You have to consider this while picking your white label provider too. If you want to open your online business as an A-Book model broker, you have to enter into a partnership with a broker that follows the same model. There is also a B-Book model and hybrid model which blends the features of both models. An A-Book model broker will team up with various liquidity providers and connect their clients to the interbank market directly.
B-Book model brokers will be executing the orders of clients on their own platform by acting as counterparties. B-Book model brokers are known as market maker brokers as they manage the orders in-house. But in the case of A-Book model brokers, there is more transparency and anonymity as you will be offering fast execution of orders without any dealing desk interruption. You have to choose the best one based on your preferences and proceed with a white label provider after filtering your options.
2.Find A Reliable Technology Provider
The second step is to find a reliable technology provider depending on the trading platform that you want to integrate with your brokerage website. The technological infrastructure includes everything ranging from a trading platform, trading tools, CRM solutions, a back-office system and an official website that is customised based on your requirements. The brokerage platform is actually a ready-made IT solution under the control of the primary broker you choose as your WL provider but they will let you rebrand the technology and offer it as your own to the clients.
You have to think from the perspective of a trader while selecting the trading platform and technology. If you were a new trader, you might prefer the simple MT4 platform and if you want to use an advanced platform, you will go for the powerful MT4 platform. You will check if the broker offers free tools like different calculators and more to improve your trading before signing up and you have to find a white label provider that can meet your expectations. You can click here to access those trading calculators. A platform with cutting-edge technology is essential to ensure a seamless trading experience for your future clients. Â
3.Choose A Location To Set Up Your Head Office
You can run an online brokerage with a virtual office setup which is perfect for convenience and cost-reduction. But you still have to register a place as your head office to get all the licences and approvals. This is different from the jurisdiction or region where you plan to offer brokerage services to clients. The regulatory procedure will depend on the jurisdiction you pick for opening your brokerage.
It is easier to get started in offshore jurisdictions but being regulated by a top-tier authority gives you a competitive advantage as a new broker. If you join the white label partner program with a regulated broker, they may guide you about all these procedures and since they are already complying with the rules and regulations, you will be able to meet the standards set by the regulator by using their technology.
4.Customisation, Branding and Marketing
All the technical processes and back-office work will be done by the white label provider on your behalf. The initial setup process for the platform will be completed within a few weeks but you need to customise the platform and rebrand it before the final launch. You have to be creative and make your brokerage platform look eye-catching and classy. Your website should stand out in a way that the target audience gets to see it easily.
The white label provider will let you add your brand name, logo and more. You have to pay a lot of attention to branding and marketing to get ahead of your rivals which includes both new and well-known brokers with a loyal client base. You have to convince the potential clients to check your platform and try the demo account. Once you earn their trust as a brand new broker, they will open a live account and positive word of mouth can boost your sales (client acquisition).
5.Expand Your client base Through Promotions
Since all complex tasks like platform maintenance will be carried out by the WL provider, you can give undivided attention to planning promotional activities. This is essential for expanding your client base over time. Of Course, your success as a new broker greatly depends on the quality of your services but your brand name has to appear on top of the search engine results to reach the target audience.
6.Keep Yourself Updated
You have to keep yourself updated about the new changes that are taking place in the forex industry. This includes technological upgrades and innovative trading solutions that are trending. You must opt for a scalable white label solution which can be upgraded over time as your business grows. Even though you don’t own the technological infrastructure, you need to understand its functioning for monitoring.
7.Review The Performance Of Your Business
Typically, no broker starts earning right away after entering the market. Because it takes time to establish your brand name and bring clients to the platform. Thus, you have to remain patient and evaluate your performance to see if your marketing strategy is yielding the expected results or not. You need to evaluate the performance of your business by conducting periodic reviews and start planning for the future.
Final Words
So, these are the 7 steps that have to be completed for launching your brokerage with a forex white label solution. The partnership that you form with a reliable white label provider can protect you from business risks to a great extent and this allows you to reach your true potential.