As I said, the trading platform is the heart of the brokerage company. At the initial stage you will definitely have a lot of questions concerning the platform, like what to do with the platform next, how to configure it, how to connect a trader to online traders room, how to connect payment systems and so on. However, there is actually an easier and faster way for a start-up broker to get to the market. To avoid all this headache, you can rent a part of the server from any company that offers such service, or in other words to start a White Label company or WL.
What is a White Label? Saying it simply, the established company, which already owns the platform and have enough experience in technical configuration of the platform and dealing with all the accompanying issues, gives you a part of its MT4 server, branded client terminal and all of the necessary admissions. As a result, you don’t incur high initial costs and can start a broker without buying own trading platform. In this case you pay a monthly fee for WL and a relatively small set-up fee for installation and configuration of your server side.
What are the pros and cons of WL? Of course, the main advantages are quick launch and lower initial costs. You don’t need to deal with renting servers, go deeper into trade dealing specifics, trading platform configurations and all other technical things. All of these things will do the company providing you with WL. At the same time, as your client base grows bigger, you have to pay more and more for the WL service and at some point you will have to buy your own trading platform. One more thing to take into account is that, when you are renting the that the majority as a rented server, you will be located and other brokerage company, you will not be able to configure all the available MT4 server settings and to use plug-ins or add-ons from third party developers, as this may affect the performance of the whole MT4 server, and therefore operations of other companies placed on the same server.
However, this problem can be solved by using technological solutions that don’t require installation on the server and only need managerial access to the platform. For example, Multi-level Agent and IB Commission which is designed to create extended affiliate network, Bonus to Balance automating your bonus program or Event Alerts, notifying your clients about important events on their accounts. In addition, our company offers WL that already includes basic software needed by broker, such as, multi-account management solution (MAM), bridge to liquidity and so on.
More precise about the Pros and Cons of starting a broker as a White Label you can read in the article prepared for Finance Magnates.
How to launch a White Label broker?
Use all existing products and order new products by paying only a fixed monthly fee.chat with manager