Forex Grey Label is co-branded forex brokerage solution given by White Label Brokers which is considered to be the cheapest and fastest solution to start up a forex brokerage business.  

We intend to answer the following questions with this article:

Forex White Label Solution & Cost | MT4 / MT5 White Label
  • What is Forex Grey Label or MT4 Grey Label?

  • Features of Forex Grey Label Solution

  • Difference between a Forex Grey Label & White Label Solution?

  • Should a White Label Forex Broker sell Grey Label Solutions?

  • Should a start up forex broker opt for Grey Label Solutions?

  • MT4 / MT5 Grey Label Solutions and MetaQuotes apprehensions.

Whenever someone plans to start a forex brokerage business, key thing that comes to their mind what forex brokerage and trading technology they need to opt for. MT4 White Label is one of the most sought after forex brokerage solution for its popularity among the forex traders.  

But affordability and budget constraints force start up forex brokers to look for other cheaper alternatives to MT4 White Label Solution. Someone suggests them to go for MT4 Grey Label which comes at much lower cost than an MT4 White Label. But its its own limitations and issues.

Here is all you must know before going for Forex Grey Label Solutions like MT4 Grey Label, MT5 Grey Label.

There Are 3 Forex Brokerage Solutions Available To Aspiring Start Ups​

Forex White Label MT4 MT5

Forex White Label

The branded solution for start up forex brokers who intend to run a legit and genuine forex brokerage business for long term.​

Forex Grey Label MT4 MT5

Forex Grey Label

The co-branded solution for start up forex brokers who are running short on budget and looking for low cost brokerage solution.

Introducing Broker MT4 MT5

Introducing Broker

IBs are like re-sellers or partners who promote the White Label Brokerage Business and introduce traders to them for earning.

As you can see, Forex Grey Label falls right in between the Forex White Label Solution & Introducing Brokers where former is fully branded solution and later just works as a partner.  Forex Grey Label provides greater flexibility in terms of control and customization within the ambit of a Forex White Label Broker. 

Key Features Of A Forex Grey Label​

Franchisee of a White Label Broker

Grey Label is kind of Franchise of a Forex White Label wherein the business is operated under the brand of main broker but with a flexibility to put in your own terms and conditions as well. 

  • You can have your own CRM
  • Own branded website
  • Account or Membership Plans
  • Set Spread  
  • Leverage of Choice
  • Commissions 
  • Swap Charges
  • Liquidity Providers
  • Currency Pairs & Groups

Co-branded Forex Brokerage Solution

While the Trading Terminal shows the brand of White Label Broker you are part of, you can still use your own brand logo and identity on your website and traders room. Most of forex white label brokers who would give you FX Grey label won’t mind it. It’s just that you must not do something that hurts their branding.

Design a appealing logo and use it everywhere possible like Website, Traders Room, Email, Adverts, Letter Head, Banners, and all other mode of marketing and customer communication.

Cheapest Forex Brokerage Solution

While Forex White Label may cost minimum  USD 5000 and monthly recurring charges of USD 2000 for an MT4 White Label or MT5 White Label which varies between the forex brokerage solution providers.  

Most of Brokers & Solution Providers’ MT4/MT5 Grey Label costs Zero Set up fee and monthly charges as low as USD 500. Thats the minimum we have heard they charge and it could certainly go higher.

The Forex Grey Label Cost largely varies from one provider to another and largely depends on the add on tools and services like CRM, Traders Room, Wbeiste, PAMM, MAM, Liquidity, IB, Affiliate modules etc one opts for.

Fastest Forex Brokerage Start Up 

To set up a Forex White Label may take 5-7 Working Days if you already have a business incorporated. Like if you opt for MT4 or MT5 White Label, you need to pay the fee in advance and upon successful credit in Meta Quotes Account, your MT4 / MT5 White Label Solution Provider will initiate the application along with KYC details. It may take upto 5-7 days or more. 

To get a Forex (MT4/MT5) Grey Label, you just need to pay the agreed money and share the KYC docs if they ask for it and your good to go. It usually takes just a day or two. It can be set up in a few hours as well if all things fall in place. This makes the Forex Grey Label the  Fastest Forex Brokerage Start Up.

Forex Grey Labels Are Considered To Be Complicated And Most Trading Technology Companies Like MetaQuotes Despise Them For The Following Reasons;

Scammy Brokers

Start-up Forex Brokers opting for MT4 / MT5 Grey Label Solutions usually have nothing much on stake as they are invested lightly. This gives in genuine people a leeway to scam traders. This is the worst nightmare of a forex broker planning to sell grey label solution to start up brokers.

Negative Branding

Most of the Forex Traders primarily look for MT4 White Label Brokers and then MT5 White Label Brokers. Such is the popularity of MT4 & MT5 Trading Platforms. Everytime a broker does something bad or scammy, it hurts MetaQuotes Brand as well. They don't like it and are absolutely right.

Regulations

Although not every Forex White Label broker is regulated but still their KYC is done by companies like MetaQuotes. Grey Label Brokers usually don’t go for regulation. We have never heard about it. Regulators anyways audit the businesses periodically and we doubt if they approve of Forex Grey Label Solutions over a White Label Solution.

Revenue Loss

Last but not the least, an MT5 or MT5 White Label Broker pays money to MetaQuotes while setting up and monthly fee. This is their revenue generation model, this is their business. Every Grey Label Broker is a loss to them as they don’t get a single penny from them. No wonder they hate brokers who Sell FX Grey Labels.

Like every coin, Forex Grey Label v/s White Label Solutions have two sides. Similar to other cases, the points mentioned above are apprehensions and there is no guarantee if a White Label Forex Broker won’t commit fraud and Frey Label Forex Broker will definitely scam the traders. We have ample set of examples where an established and regulated Forex Broker has scammed its traders. 

Every Partnership Whether In Terms Of Introducing Brokers Or Grey Label Could Help A White Label Broker With Following:​

Advantages to Brokers

Every partnership whether in terms of Introducing Brokers or Grey Label could help a White Label Broker with following:

  • More Traders

  • More Liquidity

  • More Revenues in terms of Spread, Swap, Commission Charges

  • Additional Revenue Model by way of Set Up & Monthly Fee

  • Better utilization of existing human and technical resources which may be  underutilized. 

  • Better negotiation with vendors like Liquidity Providers if you have higher number of traders and volume. You can get better prices.

  • Less Dependence on Marketing & Promotion for Customer Acquisition

  • You can focus more on business operations

  • A Forex Broker can scale up quickly and rapidly 

  • Brand Building. Grey Label Brokers are ultimately using your branded platform and their clients will become aware of your brand. 

  • Even if traders leave the broker for poor service or something else, they may still want to trade with you or your IB.

 

 Disadvantages to Brokers

  • As discussed earlier, Grey Label Brokers don’t have much on stake to worry about their brand and reputation. Even if their intentions are genuine, if things don’t turn out positive, they may shut shop which will hurt your brand. 

  • If they do anything scammy or illegal, the onus will be on you to take the accountability and fix it. A proper KYC may save you to some extent but you need to decide whether its worth or not. 

  • If you are running an MT4 or MT5 White Label, MetaQuotes doesn’t like if you give out Grey Labels. And what we know is they may take action and penalize a broker if they find out it was giving Grey Label Solution.

CONCLUSION

Hope this article brought clarity about The Forex Grey Label, its features, Forex Grey Label v/s White Label, its advantages and disadvantages. Please share your thoughts and queries in comment sections. 

Forex Grey Label solution looks to be advantageous to both White Label Broker and Start Up brokers. They need to be cautious on knowing who they are working with and the probability of any wrongdoing. Proper KYC and Due Diligence should work both for white label and grey label broker. 

As far as MT4 /MT5 Grey Labels are concerned, what we understand is MetaQuotes doesn’t like it so you need to be doubly sure about it. It’s better if you consult to them directly so that they may better guide you. There must be a better way to start a legit forex brokerage business.  

Disclaimer: This article is for education and information purposes only. None of this article’s parts be considered a legal and eligible advice.

Leave a Reply