White label brokers provide the best solution to your business by letting your business gain the needed visibility. With the added support and the advancement of the technology, you can outsource parts of your business to the brokers and make the business seamless. Letting the products being bought by other firms gives an edge to your product if you don’t have enough marketing budget or skill. Currently rising and on the uptrend, this form of brokerage is also very common in the forex market which makes them a new and excellent business idea for the entrepreneurs.
The cost of setting up the brokerage firm under the white label can have various components but is supposed to vary from place to place. An estimate of the cost of setting up the brokerage firm is as follows:
∙ Setting up of the trading platform: $15K
∙ Manpower: $35k
∙ Legal documentation: $350k
∙ Skill development and tutorials: $20k
∙ Brand awareness & marketing: $55k
Advantages of white label broker
Though such a form of brokerage is mostly used in the forex market, there are certain advantages and disadvantages which are associated with this form of the brokerage firm. Though it is an upcoming form of brokerage model, let us explore the various pros of such a brokerage model:
Brand value:
Why would anyone choose your brokerage firm if it doesn’t have a value associated with it? The added brand ensures added features and the extra protective layer of trust and security.
Customization:
Every consumer has a specific needs and customization for all the customers is key to success. Such a form of brokerage provides the best form of customization to their users, thus making it user-friendly.
Training & Support:
If you are new into forex market and wish to learn about the same in-depth, choosing a brokerage firm that gives proper training and support while learning is an added benefit. It is an added benefit of white label firms, which make them unique and ahead of their competitors.
Less competition:
If you are looking forward to be an owner of such business, you might have to invest a lot of cash, yet the low competition in this domain is certainly a trade-off which makes it easier for the thriving of the competitors. Less competition gives more scope to your firm to be recognized amongst the potential customers.
Cool maintenance:
No need to worry about the in-depth maintenance cost and fee as the firm which shall be providing you the label will take care of all the added maintenance required with time for your brokerage firm.
Final thoughts
Though the initial stages can be a bit difficult, yet it is often the best way to go with the rising trend. Starting a white label firm helps you to track into the heavy trading volumes in the forex market which would ensure that your platform has to remain smooth and robust for operation. White label broker firms that decide to buy the trading platforms to ensure that the main business of the firm runs smooth, is the new trend.
