A Forex White Label, Three Reasons Why YouShouldn't Start One.
Hi! On this video, I want to summarize an importantsection of our White Label Guide.
the 3 reasons you should NOT start a Forex whitelabel business.
I don't want to discourage you from establishingyour own branded Forex brokerage firm.
I just want you to start when, and ONLY IF, you're ready.
These 3 reasons will give you a pretty goodidea of some of the basic things you need to take care of before you get started.
After all, I want you to know exactly whatyou're up against and not mislead you by painting an unrealistic picture of what you're likelyto face.
So let's get started, shall we? Chances are that if you're watching this video, you already know what a Forex White Label is.
But in case you don't, it's not rocket science.
It's simply a way to brand a trading platformwith your own logo or brand, so that you're able to act like a brokerage firm withoutneeding to have all of the licenses, technology, infrastructure, and everything else that abroker needs for their clients to trade currencies online.
The 1st reason you should avoid the launchof your own white label in Forex or at least delay it for a while is A Lack of MONEY! In today's world, no sane person can expectto start a business without access to any capital whatsoever.
Nevertheless, via IntroduceForex.
com we receivemultiple requests on a daily basis from people looking for a free white label solution.
If you do the math, the business model ofa free white label just doesn't add up.
Think about this.
The platform that most Forex traders preferis MetaTrader 4 or MT4, which is licensed by a company by the name of MetaQuotes; theMicrosoft of retail Forex.
For every MT4 white label that a brokeragefirm sub-licenses to a third party (like you), MetaQuotes charges $5, 000 up front and $1, 000a month.
MetaQuotes does not set up a new white labelplatform until that money is paid.
No matter how much potential you think yourfuture white label business has, no money means no platform! But you may argue that the broker should payfor it, since you'll pay them back once you get your successful network of traders upand running.
But given the fact that most new businessesin ANY industry fail during the first few years of operations, I ask you, �Do youthink that any intelligent brokerage firm will take that risk?� Of course not.
No reputable Forex brokerage firm that caresabout their business will issue you a free MT4 white label while praying that you willsucceed one day.
Even though this is a fact, some people arereally hard headed.
They may respond, �I CAN find a free solution.
I can simply go with a firm that offers theirown proprietary platform and they might be willing to brand it for free.
� Yes thereare firms that may be willing to do this, but if you offer a platform other than MT4, it will likely lead your demise! In the FX market, traders want MetaTrader4.
They demand it.
Offering them something else represents avery steep uphill battle.
In conclusion, you NEED MT4! But don't get discouraged.
If you don't have the funds to launch yourown Forex White Label just yet, but believe that you have a business model that will reallywork, I have an easier and more practical solution for you.
Start by becoming an introducing broker witha reputable Forex firm that offers a good incentive program for white label partners.
Under this incentive program, once your IBnetwork is generating enough monthly volume, you can transfer your client accounts to yourown White Label brand and the brokerage firm that you partner up with will pay all theMT4 platform fees on your behalf.
After all, a profitable IB business is concreteproof that your White Label will also be successful! To learn more about how incentive programswork, simply complete the form on our website and one of our executives will gladly walkyou through it.
A lack of experience is the second reasonyou should not start your own white label.
It's important to note that by experience, I am not referring to business experience in general.
You might already be a very experienced entrepreneurand even own businesses that are successful in other areas.
but if you don't know muchabout Forex and trading, you might be better off delaying the launch of your branded brokeragefirm.
Like any other business, Forex is unique.
Failure to understand what makes it work andhow to avoid potential pitfalls and headaches associated with it, can easily lead to thedemise of your white label.
The problem is that since Forex can be verylucrative, inexperienced businessmen might approach it with a holy grailish mentality.
However, FX is anything but a guaranteed pathto riches.
It takes experience, knowledge and effortto make a Forex business work.
If you ignore this fact, you might as wellflush all your start-up funds down the drain! Even if you plan on hiring the staff to helpyou run your white label business, it's a good idea that you know a bit about Forexbefore getting started.
That is the reason that we spend so much timediscussing this in great detail with all our customers as well as providing time-testedadvice to help them acquire the necessary experience before getting started.
do you have the experience it takes tomake this business work? The third and last reason why you should notstart your own white label relates to VALUE.
You have the money and you have the FX experience.
But how do you plan to stand out in the crowd? Every industry has competition.
Forex is no stranger to it.
The key is how you plan to deal with it.
What are the services and products that youplan to offer your clients in order to have an edge over the white label sitting rightnext to you? What makes you different? If you're having a difficult time answeringthese questions, you might want to take a deep breath, relax, and make sure that youfind good answers before slapping your logo on MT4.
On our website and guide, we discuss manyways Forex White Labels can offer value to their customers; for example, you can offertrading education, a live chat room, professionally managed accounts, etc.
You should definitely come up with a listof incentives for customers to open accounts with your firm.
It's important! Remember that the more value you offer yourtraders, the higher your conversion from demo to real accounts will be and the longer yourcustomers will trade with you.
Furthermore, in today's day and age of social-mediafanaticism and obsession with reviews, offering your clients valuable incentives will onlyhelp strengthen your company's reputation online.
During all our initial discussions with potentialwhite label partners, we spend a lot of time going over these incentives.
However, there are some rare exceptions.
There are times that even though new clientsdon't have anything unique to offer, we still recommend that they start their white label.
When do we do this? When customers are fortunate enough to ownsuccessful, high-traffic websites in a complementary business that they can leverage off of.
For example, let's say that the company wishingto start a white label runs an online casino with hundreds of thousands of monthly visitorsor an investment blog with many subscribers and fans.
A company like this can easily set up a newbrand or their existing brand on an FX platform and, just based on sheer traffic, converta small percentage of their existing leads to open Forex accounts.
Even though the conversion rate will be muchlower than a white label business that offers good incentives for customers to open accounts, the sheer number of potential leads might more than compensate for that.
But as I mentioned earlier, these kind of�high-traffic� complementary businesses are the exception rather than the rule.
All other businesses should carefully writedown a list of value-added services they plan to offer before making the decision to starta branded Forex solution.
Whether or not you have anything of valueto offer your white label clients, we'll discuss this topic with you in enough detail to helpyou take the most profitable course of action for your firm.
If you've watched this far, you obviouslycare about making your White Label Forex business work.
Go over these three steps in your head andthen contact us to devise a plan of action that will increase your chances of successexponentially.
To help clients like you achieve success andavoid the delays and headaches that some companies face when starting out in Forex, we also publisheda detailed guide based on practical experience and time tested techniques.
You can access our hands-on guide from ourwebsite IntroduceForex.
I hope you liked this video and that it helpedyou.
Let us know your thoughts by leaving yourcomments below.
Thanks for watching an we look forward tohelping your Forex business grow.