White Labels

White Labeling or white labels are an extremely common practice in the forex market, which implies one buying another firm’s product and then marketing it as its own.

This is routinely done in the retail space, as white labeling is helpful in utilizing trading software, platforms, and other additional services that brokerages may offer.

What Are the Benefits of White Labels?

White labeling is very popular in the forex market given the benefits it bestows to all parties. This includes both the buyer and seller of a given product.

In terms of product-makers, these parties benefit from selling their software and platforms as it garners additional income.

This also removes many costs associated with marketing their own product.

Indeed, product-makers generate additional income for selling their platforms and software, without having to rely on marketing costs or advertising their products directly to traders.

Additionally, traders are much more likely to stick to their existing trading platforms, which makes the adoption of technology in this way a natural fit.

By extension, brokers also have many positives associated with white labeling given it saves them the cost of developing a new product in-house to attract newer clients.

Forex technology has already evolved over the past decade such that newer products require large portions of capital, time, and personnel.

While especially true for newer brokers, even existing players sometimes do not have these requirements in large supply, making white labels a viable option.

White labeling can go a step further, with this relationship leveraging more tailored products via enhanced customization.

Buying, rather than developing new software is generally easier to entice existing users to stay with the broker, while also being cost effective.