Forex White label VS Grey label – Difference between the two

Last modified date

MT5 White Label

If you look at this article, you’re probably already at a level where you understand that setting up your own independent brokerage with an in-house platform and your own software version like Metatrader is not just extremely expensive, but very tedious. Now you will learn Forex mt5 White label VS Grey label

Now, before we figure out the best way to start your forex business without cost and hassle, let’s understand the three options available.

  1. Introducing Broker (IB) is effectively a corporation or entity that partners with a primary broker with an agreement to ask clients for the latter. This commission-based relationship where, as the name suggests, the Introducing Broker (IB) simply introduces traders to the primary broker who in turn pays the IB either in the form of a flat fee per client or spread sharing for as long as the IB’s introduced clients keep trading with the primary broker.

Introducing Broker Requesting and setting up an IB is easy. Complete an IB application with the primary broker, get your unique Introduction broker ID, reference links, promotional materials, and you’re okay.

  1. Grey Label is a cheaper White Label version. This solution is more for startups who don’t want to make a huge investment yet. In this arrangement, you get the Grey Label license from a Whitelabel broker, and the Grey label broker branding is separate from the technology provider (Whitelabel provider).

Grey Label approach While this is the most cost-effective way to start your new forex venture, the drawback of consumers getting confused with two different brands will always be an issue with brand recognition and loyalty. Therefore, apart from the monthly fee or commission charged to the MT4/MT5 WhiteLabel service supplier, the transition to a White Label would inevitably entail a cost and hassle. Not to mention, consistency for all the technology needs, glitches, and downtime.

Nevertheless, similar to an introductory broker (IB), it provides certain extra benefits in terms of the influence of client classes and partnerships, helping you to handle your consumers ‘ spreads and liquidity and their deposits and withdrawals.

  1. White Label is the freedom to use the technology (MT4/MT5, Internet Trader, or App Trader) to label your own. This approach is perfect for seasoned individuals or companies who want to become forex traders to establish their own name of forex trading.

White Label approach White Label approaches to encourage the end-user to associate with the system as one that you own and may even give the impression that you create it (although this is not the case). End-users connect all their practices with your product and give you credit to allow their purchases, creating brand recognition and loyalty.

A White Label approach is the full end-to-end software kit that can be customized to your needs. It’s the easiest way to run your brokerage firm. You can avoid huge costs and time to set up, check and go live (in most situations $100,000 and a year). Also, running a full-scale forex business model involves other complications like licensing and combining technology. The White Label format gives you an in-depth understanding of the entire business and prepares you for the day you have enough capital to set up your own independent brokerage.

Similar to a Grey Label approach, White Label often offers greater influence of the company and consumers.

Now that we’ve learned the fundamentals of the three options available to anyone looking to start a forex company, let’s rethink why we’re here first to better explain the best option for you.

Note, the reason we’re looking at these choices is mainly the price of building your own independent brokerage. While licensing and incorporation have a big reason, the cost factor certainly takes the cake. Despite this, let’s figure out the best choice now.

Although the Introducing Broker alternative is cost-effective, for most, Grey Label’s presence eliminates the IB option. However, if you’re someone who doesn’t want to spend a lot of time on this business, but has contacts at your disposal that you could leverage by introducing them to someone who runs an Fx brokerage and gives you a cut.

The Grey Label option as we previously established is probably the most cost-effective way to start a new forex business. That said, we wouldn’t be wrong to assume you as an entrepreneur understand that start-up or set-up costs are just the beginning.

What matters in your decision is the ongoing costs such as commissions and maintenance fees. With a Grey Label having lower set-up costs than a White Label, commissions are usually high compared to a White Label’s commissions and maintenance fees. Also, the fact that you’re already recognized as a brand with a White Label that offers end-to-end solutions makes a huge difference and eliminates the transitional cost that comes with a Grey Label wanting to scale up somewhere.

With all this information, there is still a dilemma as most White Label solutions not only have a huge setup fee and monthly maintenance fee, but also charge a spread commission. That’s where we fall.

With a White Label approach like ours at Sanfrix, the trading volumes have no fees or hidden costs. Installation charges and monthly maintenance costs are the only fees involved. Apart from the assurance of uninterrupted and secure trading, we also offer a fully tailored solution including hosting and connectivity. Additionally, we specialize in developing custom plugins that are fully compatible with MT4/MT5 servers.

We also offer free CSO-as – a-service. Yeah, you read right, our devoted Chief Success Officer will not only be your tactical partner but will also have continuous 24/5 assistance for all your organizational needs.
Don’t just take our word, ask any of our clients who’ve been with us for years for the same purposes. Go on, order a prototype, or book today’s free consultation!

If you want to know more about forex then read this

For any information contact us

Launch FXM

Share