What is white labeling for Forex brokerages? Is it good or bad for the brokers?

1. Forex White Labeling
IS IT GOOD FOR BROKERS?

2. The Quick Catchup
White labeling began only a few years back
But a lot of traders & IBs are in already
Particularly
in South East Asia

3. So… What is White Labeling in Forex?
Prime Broker
Provides infrastructure &
technology
White Label Broker
Retail Brokering
(White Label’s brand)
Trader

4. Is it like franchising?
Yes, except…
A franchisee uses
the parent
company’s brand
A white label uses
its own

5. Okay.. Is it good for brokers?
Forex is no different from the rest of the world.
There are pros.
And there are cons.
That said, so many top brokers in the world have started off as white
labels. Then, there must be something really GOOD about this?

6. It’s good, because…
 White labeling reduces the cost of entry for new
brokers

7. It’s good, because…
Variety for traders. Period.
You get customized
 Trading conditions
 Spreads
 Commissions
And more…

8. It’s good, because…
Everyone benefited
White Label Broker
Gets customers & commissions
Prime Broker
Gets his share of commissions
Trader
Gets the trading conditions he needs

9. The downside…
Honestly, the low barrier to entry did a bit of mess
here.
Some inexperienced
brokers in town
We’re gonna start white
label, coz we got enough
clients!!

10. But, guess what…
Mismanagement of such white labels causes heartburn
to the traders
Providing white label requires knowledge, experience and the
capability to run a brokerage.

11. Bottom Line
Forex white labeling is here to stay!
It’s great opportunity for brokers at low cost. Just,
 Choose the right prime broker
 Focus on the quality of customer service

12. Go Win the Market!
And get some of this for all your traders and for
yourself.
Read this as a blog post at:
http://www.cmigroup.co.nz/blog-detail/is-white-labeling-good-for-forex-brokerages.html