If you are looking to start your brokerage firm, trying to decide between white label brokerage and starting from scratch makes sense. Think about it, the initial capital cost of setting up your very own MT4 platform is a lot.
In fact. Undeniably unaffordable by many novice brokers. In the time globalization and the internet, white-label brokerage platforms have made it easier for people to set up global businesses. Online Forex companies are one of the thriving industries online right now.
Did you know that the Forex market is a $5 trillion industry?
Precisely why online Forex platforms are evolving at a rapid rate.
is White Label Brokerage?
Simply put, a company, that owns a platform and has a wealth of experience with the technical configuration white label brokerage. They provide you with a part of the MT4 and you can use the brand client terminal with all mandatory admissions.
This ensures that you as a novice broker don’t have to incur the high capital investments but can start your broker career. You can pay a monthly fee for the white label brokerage platform. And, invest in setting up and installing to configure your server.
White Label Brokerage | Pros & Cons
In order to help you decide whether white label brokerage platforms is something that works for you, we have broken up the pros and cons of it.
You can now easily go through them and make an informed decision as to how to set up your online Forex business.
White Label Brokerage | Pros
- It is undoubtedly expensive for novice brokers to purchase a whole forex MT4 server. It is risky and costly also need a great deal of technical expertise. However, with white label brokerage platforms, you can have the similar value propositioned forex business but with lower capital investments.
- You have no need to rent servers or having a deep backend technical specification. All of these are covered by the white label brokerage company.
White Label Brokerage | Cons
- You must note that white label brokerage platforms work best for small and middle-income Forex businesses. But, as your business grows exponentially, you will have to consider buying your own platform. Therefore, white-label brokerage platforms are a great stepping stone for novice brokers who want to even learn the technical specifications of such a server.
- One thing you need to look out for us that in renting a server, you are sharing a platform with other brokerage companies too. So, you may have some limited access to configure the full MT4 platform. You may not even be able to use third-party add-ons. However, all of this gets partially fixed when you use technological solutions geared to minimize your installation on the server. That means your access can be limited but not completely dependent on the white label brokerage platforms.
In conclusion, white-label brokerage platforms are the ideal solution to set off your brokerage career. It is a great learning curve for new brokers who want to learn the technical backend of the MT4 server too.