Forex White Label Solution is the turnkey forex brokerage & trading terminal software solution developed by IT companies like MT4 White Label & MT5 White Label solutions by MetaQuotes Inc. cTrader White Label by Spotware Systems Ltd. etc. Forex Brokers can buy the Licenses of these Forex White Label Solutions and brand them on their own.

Forex White Label v/s Proprietary Trading Terminal

Forex White Label v/s Proprietary Trading Terminal

Forex White Label vs Proprietary Solution

The key differentiation are Budget, Time in hand, Domain or Subject Matter Expertise, Scale of Forex Broker Business.

When starting up a forex brokerage, you have two options:

Develop Own Admin/Manager Terminal & Trading Terminal for Traders

You can set up your own IT team and develop an end-to-end forex brokerage and trading solution similar to other forex white labels like MT4, MT5, cTrader etc. It will be a proprietary forex brokerage solution which will be completely developed as per your requirement and you will have complete ownership. This will allow you to monetize it by selling your own forex white label solutions.

But the inhouse developemnt of properietory solution comes with some challenges as well. Like its very costly both in terms of capital investment and time spent on development. You may not have knowledge base and experience of what all features you would need as a broker and traders. There are other issues as well.

Lets discuss both the advantages and disadvantages of Developing Own Admin/Manager Terminal & Trading Terminal for Traders.

ADVANTAGES

  • Can customize it to best suit your requirements as a broker and your clients/trades
  • Not all the Forex White Label Solutions like MT4, MT5, cTrader etc are perfect. All of them have their own limitations and short comings. You can address them while developing your own brokerage & traders solutions.
  • You will have complete ownership and control
  • Licensing & Monthly Charges look expensive when you are looking to run your forex business at large scale and for a long haul. Some of these Forex White Label Solution providing companies have developed monopoly, at least this is what they think.
  • Sometimes they may behave whimsical and levy charges which forex brokers find very unjust but they can’t help and fall in line because their business depends on it. They have developed their business around the FX White Label and can’t just switch it overnight. Its costly in terms of both money and time.
  • Monetize your own forex white label solution by licensing it to other forex brokers. You can offer your brokerage solution as SaaS (Software as a Service) too. You can sell the API as well. This will open up great avenue for income. When you have your own solution, you can form joint ventures with online platforms and other start ups to help them grow which will ultimately help you to diversify and make the most of your efforts and investments.
  • Flexibility to use forex plugins and liquidity bridges with your own solution. Hope you understand that starting up and running a successful forex brokerage business is not just about having a great Forex White Label Solution. You need to have several plugins and bridges as well to connect with ECNs, STPs, Liquidity Providers, Market Makers etc.
  • When you opt for a third party FX White Label Solution Provider, you have limited options to choose from which forex plugin, bridges and APIs to choose from. You need to pay “mark up” on all the additional forex brokerage tools and solutions that you use to this intermediary.
  • When you develop all the solutions in-house, you can decide which add-on forex plugin, bridge or API you would need. You can talk to them directly and get best prices depending on level and scale of your forex brokerage operations. You won’t have this flexibility when you ope for MT4 White Label Solution, MT5 White Label, cTrader White Label etc.


DISADVANTAGES

Like coin every venture has 2 sides of advantages and disadvantages and Developing Own Admin/Manager Terminal & Trading Terminal for Traders is no exception to this rule.

Capital:

A rough estimate suggests that a fully developed, tested and running Forex Brokerage Solution may take upwards of USD 500,000 which is half a million US dollars just for the development. You need a large team of tech savvy professionals from different domains like coding, UI, UX designers, Architecture Engineers, Server & Database experts and they cost you high. Apart from this you would need the software licenses used for development. Bigger office and infrastructure, benefits and what not just for development.

All this adds upto USD 500,000+ investments without earning a single penny yet. So unless you are really deep pocketed and planning to run a large scale forex brokerage business, this investment is not worth.

Time:

If you have capital, infrastructure and skilled human resources in place, it may take 6 months or more to develop, test and deploy a fully functional forex brokerage and trading solution. That’s a lot of time and not everyone who is just starting up can afford.

Subject Matter Expertise & Knowledge:

Developing a software, tool or entire system needs lots of Subject Matter Expertise & Knowledge. And its level is going to decide the quality of your system. The requirement and planning simply depends on it. Unless you or someone in your core team is capable of handling this task in and out, you are going to have lots of trouble.


The biggest challenge is developing both Broker side of terminal and trader side  of terminal requires a very deep, thorough and diversified knowledge which is extremely rare. Even MetaQuotes took decades to develop MT4 & MT5 White Labels which cover a large market.

Be realistic and honest with what you really can do!

Third Party Tools, Plugins & Bridges:

No matter how smart and capable your core & development teams are, you are going to need Forex Tools, Plugins & Bridges like Charting Tools, Indicators, Analysis Tools, Liquidity Bridge, ECN Bridge, Plugins etc which are going to cost you. And the cost largely depends on who you are, what you are going to do and at what scale. If you appear to be small to them, them may not entertain you in first place, if they do, cost is going to be higher.

Unless you are well funded, affording them is going to be a real challenge.

Adaptability from Clients/Traders:

Lets assume you invested time and money into development of your own solution and you are confident that forex traders are going to like. When you approach the target forex traders to start trading with you, first thing they are gonna ask what trading terminal they are going to get.


Trust us, most of them expect to get MT4 or MT5 Trading Terminal. Most of them have started their forex trading career on MT4 Trading Terminal. They have watch the videos and tutorial which used MT4 Trading Terminal to explain charts, forex trading set up, order placement etc.


Its like Microsoft Windows, which is just another Operating System. There are numerous open source free operating systems but people still want Windows.  

And WHY? Because they are used to it and we humans naturally resist change. I know what you are thinking, my trading terminal will have best features and functions, UI & UX is going to next level that everybody would love to get. That’s not the case always.

CONCLUSION

Now the big question is how to decide whether to go with a licensed Forex White Label Solutions like MT4 White Label, MT5 White Label, cTrader White Label etc or go with in-house development of Forex Brokerage & Trading Solution?

We will give you a black and white suggestion to this.


Go with in-house development of Forex Brokerage & Trading Solution if;

  • You want to run a really large scale forex brokerage
  • You are sure be there for long haul
  • You have capital of $ 1 million or more
  • You can wait for 6-9 months just for development
  • You have deep understanding of what you would need in your Broker Terminal & Trader terminal
  • You can wait for months before making any money

Go with in-house development of Forex Brokerage & Trading Solution if you;

  • are not sure how large scale you can grow your forex brokerage business
  • are not sure how long you can survive
  • have limited capital
  • want to start immediately and can wait for 6-9 months just for development
  • don’t have deep knowledge that needs to development
  • You want to start earning as soon as possible

Hope this article brought great clarity to you about the FOREX WHITE LABEL V/S OWN PROPRIETARY FOREX BROKERAGE & TRADING SOLUTION. Please note that these differences and suggestions are from our interactions with forex brokers and traders. You need to decide for yourself. Please do share your thoughts on it in comment section.

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