"A White what?" If that same question just popped in your head, then you probably don't need it.
Even though we discuss White Labels in detail in the Forex White Label Guide, we'll discuss the topic briefly here, since it might make sense for some IBs to consider it down the road.
So what is a White Label, then? When it comes to Forex, the basic definition is a branded, non-brokerage firm that offers currency trading services to their clients. When an introducing broker becomes a White Label, their clients see the company's logo or brand on the platform. This is called a "partial" White Label. When referring brokers also take the necessary steps to accept deposits directly from their clients (so clients do not know who the actual brokerage firm is), this is known as a "full" White Label. Full White Label brokers may be required to register by the government where they operate.
The reality of a White Label is that most introducers don't really need it, because they are OK with the client trading on a platform branded by the broker they use and they might not want the additional costs that could be associated with a branded solution.
Your answers to these basic questions will determine whether you need a White Label or not.
- Is it really important for your clients to see your own unique brand and no other brand on the platform they use to trade?
- Is it really important for your customers not to find out who the brokerage firm you work with is?
- Is it really important that clients make deposits with you directly instead of with the brokerage firm you work with?
If you answered "yes" to any of these questions, you probably need a branded solution.
As previously mentioned, a White Label might require that you become registered in some jurisdiction and might have some costs associated with it (even though sometimes temporary or refundable for successful IBs). A White Label will probably also require more work on the agent's behalf, because a branded business model might require that the IB perform some of the responsibilities of a brokerage firm.
We work with each Forex IB closely to determine if they should operate under a branded solution or not and if they require one, to figure out what the best option is to implement it.
For more information, please read our Forex White Label Guide.