While starting a low cost whitelabel Forex brokerage business, it’s very important to decide which kind of whitelabel trading platform you should launch with. Most beginner brokers come up with lots of consideration while making these decisions. Such as how much cost will be involved? Who provides the best broker support? How much time will it take to get started?
So, setting up a whitelabel Forex brokerage with a platform is not so expensive but very tedious. The easiest way to start is choosing between Greylabel and Whitelabel solutions, and for that, read the key difference mentioned below.
What is Greylabel?
A Greylabel is a solution for launching a low cost whitelabel Forex brokerage business with someone else’s brand; the whitelabel trading platform remains under the lending broker’s brand name.
To some, this could be the most economical way of launching a new Forex business, but the biggest downside is that most of the customers will get confused between your company and trading platform brand’s as it’s different.
Launching business with a Greylabel will also include promoting trading platform business. As well as the owner of the trading platform also has some control over your client’s group and IBs relationships, thus your company will completely rely on the lending broker company.
It has been observed that clients in a Greylabel have become uncertain about the broker’s ability to secure the data and provide quality service. The clients remain in confusion about why the company is working under different brand names which can lead to uncomfortable questions and lack of loyalty.
The biggest drawback while using a Greylabel is, in case your platform lending broker gets into some sort of trouble, it will greatly impact you. Alongside, there is always a fear of data breach means the lending broker can use your client data and convert them.
What is Whitelabel?
Whitelabel is a solution used for launching a low cost whitelabel Forex brokerage business under your own company branding, which means the whitelabel trading platform will be under your own brand name and promotion.
Your clients will recognize your company logo on the platform which makes the company look more established.
By using a Whitelabel solution, you will receive complete control over your client’s group as well as IBs relationships. Your clients’ data remains completely secured with you as there is no mediator between you and the technology provider.
Whitelabel also comes with a complete package which you can customize as per your low cost Forex business and trading conditions and requirements. This is the fastest and safest way to start and run the Forex brokerage business.
The promotions are made easier and you earn clients’ trust. With whitelabel you get the technical support from the technology provider which helps you manage your service quality. It enables many more features for you which you don’t get in a Greylabel.
Nonetheless, if you try to create your own whitelabel trading platform from scratch, it will take a larger amount of work, time as well as money.
Despite so many benefits, why do people prefer Greylabel?
The only reason individuals go for Greylabel instead of Whitelabel is the cost; whitelabel providers in the market charge a heavy setup and monthly fee.
But what if you get a Whitelabel at the same cost as a Greylabel? Isn’t it better to go for the Whitelabel solution than Greylabel and have a more established low cost Forex brokerage business?