What Is The Difference Between White Label, Introducing Broker and Grey Label Products?

If you are looking to get into the forex business a step further – becoming a broker, you have probably already realised that opening an fx brokerage, albeit not extremely expensive, is a tedious and lengthy process.

However, there are a few ways to avoid that and more so, start with a tested and proven model of operating.

These are the opportunities provided of White Label, Grey Label and Introducing Broker (IB) products.

In this article, we look at them and present their similarities and differences, helping you to make an informed decision on your next step.

White Label

White Label services offer a complete package of all needed software (trading platform, CRM, analytical software and mirror trading) and licenses to start and run an fx brokerage.

It is suitable for individuals and companies with experience in currency trading that want to become forex brokers and create their brand.

White Label use the established model but allows customisation and rebranding. White Label is known as the fastest way to set up and get the business running.

It provides a comprehensive opportunity and can save you thousands of pounds from spending time on constructing your systems and running tests before going live.

Typically, to apply the White Label service, the new fx brokers pay an initial cost which can vary depending on the size of the new company and then a monthly fee for technical and other support.

Grey Label

Grey Label is known as the more economical variation of the White Label service. It includes purchasing a license from a White Label broker, however remaining connected with their brand and technology.

Grey Label is a preferred opportunity for the less experienced individuals or firms, often startups, as it doesn’t require such a significant investment.

However, Grey Label offer far less control over your business compared to White Label. Additionally, you are technologically dependent on the White Label broker, and every issue in their system affects you as well.

READ ALSO: Compare leading forex brokers in just a few steps

Introducing Broker (IB)

Introducing Broker perhaps is the simplest way to start in the forex brokerage business. However, it does not offer any branding or independence.

As the name suggests, Introducing Broker is an individual or a company that agrees with the main broker to attract clients on their behalf.

For the service, they receive a commission that could be either per client or spread sharing as long as the clients continue trading with the main broker.

To set up an IB, you only need to sign a contract to get your unique IB Identification and promotion materials.

This product is suitable for individuals or firms with no or minimal experience and almost no capital.

It offers good learning opportunities; however, it does not allow any control over operations, relations with clients or other managing opportunities.

These are the three options available to anyone who is looking to start an fx brokerage but wish to avoid the struggles of a stand-alone launch.

As you can see, the White Label product is the one offering a complete package that will allow you not only to start your business based on an already established model but build up your own brand identity.

Still, keep in mind that White Label is costly compared to the other two opportunities. In the end, your decision should be based on your goals, knowledge, experience, and available capital.