Pros & Cons Of Introducing Broker And White Label

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Pros & Cons of Introducing Broker and White Label

Introducing brokers and white labels are the 2 important factors in the Forex trading market. These 2 modules are very crucial because of their functions and benefits received in trading or for brokerage business. Fundamentally, these 2 modules are offering similar functionally because of the goal they are focusing on such as gathering, converting as well as retaining end-users which eventually helps to trade on broker’s platform. 

In both the modules, trading is performed in large volume, so when revenue of broker starts increasing eventually profit of business as well increases so it’s very crucial to attract most of the traders into the brokerage to keep them engaged into trading. 

Normally, IBs or introducing brokers works as intermediaries between brokerage traders & brokers. But the white label is a complete business in which it provides more control over the clients.

Check out some of the pros & cons of introducing broker and white label:

IBs or Introducing Brokers:

Introducing brokers work as the marketing agencies that perform recruitment operations of traders for their partners that are brokers. IBs also help the traders to open a necessary trading account on the respective broker’s platform so that the trader’s investment directly reflects on the broker’s business. Brokers provide fixed commission to the IBs every time they introduce new traders to them. 

Some of the various ways to refer the traders to brokers are via email, banner advertisement on introducing broker’s website, offering special promotions and more.

This works as an affiliate link as Brokers provides an unique link to each of the individual IB to track their records and find out how many traders he referred to. Some advanced IBs generate their own advertising campaign for their clients that are brokers plus manages their sales as well.

So becoming a introducing brokers is a very good initiative for diving into the Forex business. Someone who is in money management, owner of financial website/forum or successful trader can become IBs.

Setting up an introducing brokers business is more cost effective than forming a regular Forex brokerage business because they don’t need advanced technology as well as PSP charges.

 White Label Brokerage:

Running white label business is completely different than working as IBs. It is a complete brokerage firm along with their risk management team, call centers, client support services, PSPs and more. 

These white label agreements include simply providing the solution of a simple trading platform at affordable cost along with back-office support management, owning the complete brand and more. These white label brokers receive the profit from their client’s volume.

But there are some limitations available in this business as it involves leasing the trading platforms with server and they can’t have full control over the key features such as symbols of trading, opening & closing hours and more. 

There are various advantages such as you can use a trading platform under your band name, you can immediately become a broker who provides their own trading platform, you can also receive backing support, resources, equipment and more.

These primary brokers can also make reporting, administrative as well as logistics procedures.

Revenue models are flexible and it depends upon partnership in white label service. Best thing is you don’t need to hassle for opening a dedicated brokerage business on your own.the reward generated from the white label is much greater than the IBs.

By starting as the white label broker, you can easily become primary broker of the future but for that you need the white label solution of trading platforms which you can find out in our FxWhiteLabel website or mail us at at “sales@prixim.co.uk ”

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