Forex white label solutions are becoming increasingly popular nowadays since they are beneficial both for the buyer and seller. What’s more, it’s usually an initial step before establishing the forex brokerage company, so if you think about becoming a forex broker, providing white label solutions may be a good training. However, this type of service has both advantages and disadvantages, which are listed and explained below.
The plus of introducing a white label program is that it’s not as time-consuming as Forex brokerage, where you have to create or have a platform created. You only need to spend some time on familiarizing yourself with the offers of ready-made platforms and after choosing the one that suits you best, negotiate commercial terms and start cooperation with the selected provider.
The only thing you have to concentrate on after starting you white label program is branding your site and marketing it among potential customers. You don’t have to invest time and money in human resources or spend a lot of your own financial resources.
However, keep in mind the drawbacks of this type of solution. The most important is that you have very little control over the website. You also have a limited access to the database, customer retention levels, and CRM, and the systems are operated by third parties. Your decisiveness in this respect is very narrow.
Another, and probably the biggest drawback is the loss of revenue. Some percentage, usually 40-50%, of your net income is transferred to the platform owner. And at the start of cooperation with the platform owner, you cannot negotiate this amount.