The world of trading is ever-growing. Mainly owing to the corona pandemic, more and more trading firms are popping up online. These platforms have made trading accessible to the commoner. They have presented an irresistible opportunity to beginners who want to learn and progress in the field.
You may have come across many trading platforms with a plethora of features and services, and one of them is a white label trading platform. Today we will be dealing with what a white label trading platform is, how it works and why firms prefer or should avoid it.
What is a White Label Trading firm?
A white label trading platform can be better understood by comprehending what “white-labeling” is in the forex trading industry. Such a platform, firm, or broker leases the software from a forex broker technology-providing enterprise. In other words, they are taking the same system, rebranding it, and giving access to more individuals worldwide.
Any entrepreneur wants to make their business as efficient as possible and optimize its expenses. The brokerage market has always been extremely competitive, and it’s often difficult to stand out above the crowd and enhance your reputation. Besides, this particular industry sector is quite high-tech; most transactions are online. If you are focused on long-term business development and want to provide customers with high-quality trading solutions, you need to build a good technical infrastructure with a white label trading platform.
How does it work?
An intermediary is approached to obtain a white label trading system. That intermediary is a white label providing firm. The primary purpose is to lease that software from that firm, but that’s not all. After acquiring the software, the regional enterprise you own will label and brand it as its own with a few tweaks here and there.
Why is it so high in demand?
The reason behind its high demand is logical and rational. Leasing or simply renting the pre-developed software of a firm can save you from developing your own and this, in turn, helps to cut down the costs of developing a platform from scratch, which can be pretty expensive.
In addition, you get an excellent technical support team that is available to your new firm 24/7 if the need arises. Apart from the software, you are also professionally trained to understand how the software works and deal with any problems. In short, it’s a relatively cheap, easily accessible, and quick-to-set-up system.
What are some of the drawbacks of such a platform?
A white label trading platform has some minor disadvantages too. Since the service provider is the same for many trading platforms, it’s the same software as others despite the new outlook. Furthermore, no matter how inexpensive it seems compared to setting up a traditional trading platform, a white label trading platform is still pretty pricey. If you don’t have a good startup amount at hand, you may not be able to make it work. Lastly, like any other firm in a competitive field, it requires devotion and persistence to turn out as a success.