Tidbits of White Labeling in FX

About white labeling:

In the foreign exchange market and especially in the context of foreign exchange trading, white labeling involves purchase of products of one firm by a company and subsequently marketing those products of the firm by the same company. For instance in the Indian context, ITC purchases cigarettes of Dunhill and markets them on their own. But in the foreign exchange market white labeling involves trade of software, platforms and other brokerage services.

The STP broker or Straight through Processing brokers, in this connect, takes orders from clients and forwards the same to the authorities offering liquidity for the same like banks, hedge funds, etc. These brokers actually facilitate such transactions by reducing the time of the same by carrying out the processes in real time and that too without the presence of any other intermediary by having links and tie ups with such liquidity providing authorities.

The inherent benefits:

The benefits provided by the white labeling are manifold. In the first place, such white labeling activities generate huge revenue and profits for both the buyer and seller. The sellers do not have to worry about marketing their products thus saving a lot on the costs. Apart from these, the STP broker also enables in saving a lot of costs that would have been incurred in case of developing a new product. They facilitate the sellers to customize their products like software so as to send the message to customers that they are the pioneers of that particular software or platform.

You can also check the Forex White Label Program, at the provided link.

Role of introducing brokers in Forex

Any individual or company that is interested in currency trading needs to have contacts with various currency traders to become a Forex Introducing Broker. This business is quite suitable for financial advisors, successful traders, estate agents and banking officers. Additionally, people that hold a good reputation in trading can also gain success in Forex trading. As an introducing broker, you can enjoy various benefits when compared with regular traders. As a broker, you are entitled to receive a fixed amount on commissions on almost all the trades. You are paid by the currency exchange broker based on the volumes of trades that you perform every day. Some of the important functions of Introducing brokers include attracting new clients to an asset management company, conducting specialized lectures and seminars, explaining the structure and functions of the company’s website to the client, advising clients on the use of software and providing them with necessary training and technical support. 

When talking about white labeling, it is defined as a form of affiliate selling in which a merchant decides the techniques through which they want to and can increase their turnover. A white label website usually has full range of ready to sell stocks and hence can offer various advantages to institutions that are considering marketing their own brand. This can be an easiest way to gain rapid access to the dynamic world of foreign exchange, bullions, futures and options. Some of the impeccable advantage of Forex white labeling are, it assist in getting a quick entry to the market place, no additional cost for hardware maintenance, solutions for back office, dealer and middle office solutions at no additional cost and technology support. However, there are certain requirements that have to be fulfilled before signing a white label agreement. This might on an average take about 2-5 working days for necessary approvals.

White Labeling to Foray into Trading Markets as a Broker

Regardless of whether we talk about the debt crisis in Europe or the uncalled for wars funded by our able government, it is safe to say that we are not living in a truly prosperous era. Yes, it is indeed the golden age for humanity, but only when it comes to the materialistic wonders. Owed to all the chaos around, every industry is taking a hit and the overall unrest has started showing signs of yet another financial meltdown. This is the reason more people have started opting for investment trading over private investment banking institutions, making the prior a highly profitable business option for broker firms.

Further in their favor, the evolution of the internet and advancements in software development technology have given birth to online trading software applications, letting broker reach out to and serve a large number of wishful traders. However, foraying into any investment market as a broker is never easy. As a matter of fact, thanks to the age old bureaucratic system, the tedious formalities involved with entering trading market as a broker makes it a sheer ordeal; this is where white labeling may prove to be a remarkably convenient alternate for firms looking to become a broker in any of the investment trading markets.

A while label agreement (WLA) for investment trading involves a ‘buyer’ and a ‘seller’ firm mutually agreeing upon a contract for difference or CFD contract. Under this contract, the seller agrees to sell customized or white label trading platform as well as software solution to the buyer firm. Upon WLA is signed, the buyer firm gains the rights to use the trading platform of the seller firm to offer trading service to potential investors. This way, by opting for white labeling, aspiring broker firms are able to reduce their business requisites to marketing, account sales and maintenance of operational functions.

In order to find well-established broker firms offering CDF contract based broker solution, searching the web is one option. In addition to this, participating in relevant discussion forums may also prove to be a great help in discovering potential contenders in the league. However, regardless of the option chosen to find suitable broker firms offering white labeling, it is extremely important to conduct a thorough background check about the narrowed down option. This is particularly important to ascertain the level of competence, efficacy, and support expectable from the chosen broker firm.