The famous FX broker Dukascopy has recently struck a deal with a Ukrainian Bank called “Bank SICH.” The bank is seeking to expand its product offering to include Forex and CFDs trading and has therefore decided to find a white label partnership with a reliable provider. This partnership means that the bank can now trade on Dukascopy’s popular platform, JForex, and will enable SICH to offer Dukascopy’s liquidity and take advantage of its infrastructure and market-leading technology.
What is a white label partnership?
A White-label partnership is a deal between two financial institutions (a licensor and a licensee). One is leveraging the other’s expertise and infrastructure. Capitalising on the licensors ready-made platforms and systems means that the licensee can be up and trading with significantly less expenditure and in a much shorter time frame.
A suitable licensor will provide a ready-made platform with back-end, full-stack technology suite and functionality to its licensee.
What is Forex white label software?
It would be no good if you started a company only to use someone else’s systems and technology and to use some other company’s identity branding and ethos. Using an established company logo and colours will only mean more business and notoriety for them and not you. Also, it can be incredibly confusing and even deceiving for customers when they think they are dealing with a recognised brand to find out they are actually interacting with a company that is effectively ‘renting’ its systems.
Forex white label software can be easily customised with the licensees branding guidelines to avoid the above scenario.
That means the trading platform and any other client-facing interface can be made distinct and unique to your brokerage. It allows you to build your reputation and customer base, which is essential for a new brokerage looking to be successful in the Forex industry.
Saving money and time with white label services
Bespoke trading platforms and CRM systems are fantastic, but many first time brokerages fail to realise just how expensive these endeavours can be. Software engineers can charge astronomical sums, and when the project finished, there is no guarantee that customers will take to your new platform. Additionally, infrastructure fees and ongoing maintenance costs all chip away at your capital reserves.
The best way to get started in the industry is to utilise the software and systems currently in existence. They have been developed and refined over many years. Most of the bugs and glitches have been resolved for you.
Let’s take the MT4 trading platform, for example. Thousands of traders use it. They trust it because it is secure and is packed with all the features needed to trade profitably. As a new brokerage, you should take advantage of the familiarity traders have with their favourite platform to help you onboard them into your business. These customers will require much less convincing when persuading them to switch from a trusted platform to an unknown entity. If nothing else, you can use your saved capital to invest elsewhere to get ahead of the competition.
Popcorn Technology is a successful company who has developed its white-label services over many years. They have a specialist startup team and are keen to help enthusiastic entrepreneurs looking to gain a foothold in the industry.