Listen to the Article: MT4/5 White Labels, Are They Still A Viable Option in 2023 and Beyond?

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People in the forex business know that when building a brokerage, they can choose between a main label and a white label depending on their own conditions. But the most widely used trading platform in the market, MT4/5, developed by MetaQuotes, announced in September 2022 that it would no longer provide support for white labels. And until further notice, it will also stop processing new white labels.

So, we are gonna talk about whether MT4/5 white labels can still play well in 2023 and beyond. And what are some good alternatives in the market?

MT4/5 White Label: The Most Cost-Effective Option for Start-ups

MetaTrader series, developed by MetaQuotes, occupy more than half of the online trading market. Most brokers are compatible with them, and some offer other third-party platforms such as Match Trader, NinjaTrader or cTrader. It is not an exaggeration to say that the entire online trading industry is built on MT4 and MT5.

Take MT4 as an example, that is, brokers do not buy MT4 directly from MetaQuotes when building a platform, but buy the same services from brokers who already have the main label. The reason for this is mainly due to cost considerations.

The purchase of MT4 includes monthly rent and license fees: before 2017, the main label monthly rent was $1,500 and the license fee was $75,000; after they marked up the price in 2017, they rose to $2,000 and $100,000 respectively; currently there is no more MT4 licensing, because MetaQuotes has been pushing the market to transition to MT5 for years. Fazzaco talked about this topic in an article last year titled "How Far Along is MetaQuotes' 'MT4-to-5' Upgrade Plan Going in 2022?".

In addition, building a brokerage is not just about MT4, you also need to build your CRM, website, servers, bridging, apply a license and liquidity access and so on. Therefore, for start-up brokers, choosing white label can get a complete "turnkey" solution, and the cost drops significantly.

The Concerns that Come with White Labeling

MetaQuotes' decision to stop offering white label services for MT4/5 has been a headache for those IBs who want to become brokers and enter the forex trading field. One of the reasons why the developer did this is also because of the concerns that come with white labels.

One of the biggest concerns is that some of the so-called "brokers" who buy white labels have other plans. Statisitcally, many unregulated white label platforms in the industry last less than a year. The scammers use white label to lure a large number of users to deposit funds, and offer them some returns in the beginning, and then run away with their money later.

But there are also many legitimate platforms that started with white labels, so white label itself should not be dismissed altogether. If a white label platform wants to succeed in its broker business, the first thing to address is the user's concerns about their fund security. To do this, you have to take into account factors such as deposit and withdrawal efficiency, payment solutions, account segregation and third-party supervision.

The user experience that the platform can provide is also important, after all, users come here to trade. Therefore, white label platforms should provide efficient, fast and no-delay order execution, and avoid quotation delays and excessive slippage as much as possible.

The last thing is risk management. Instead of offering various attractive bonuses for users, it is better to manage risks by building good platform integration, server system and liquidity access.

Way Out for White Labels in 2023 and Beyond

The fact that the industry was shocked by MetaQuotes' discontinuation of white labes proves that we are still too vulnerable to cope with risks. But at the same time, it created new opportunities for all of us too. After all, although MetaTrader series still dominates the industry, we can still go around the MT4/5 white labeling by using alternative trading platforms and useful technical solutions.

B2Broker provides alternative solutions such as cTrader and Match Trader for clients looking to establish white label platform. Especially after that MT4/5 was once removed from Apple's App Store last year, some people began to focus on building multiple trading platforms.

In addition, there are many service providers who are vigorously promoting their own self-developed platforms. Such as Leverate's Sirix Trader, Match Trader, TradeView Markets' CommuniTrader, Scale Trade's ST Trader and so on.

Take Match Trader's white label service as an example, the company claims that its proprietary platform has integrated most of the distribution systems in the market, equipped with advanced CRM solutions and mobile app solutions. In addition, it also provides a variety of APIs to facilitate clients to integrate various applications on the market and build their own trading ecosystem.

In summary, for start-up brokers, the best way at present is to use a multi-platform strategy as their technical foundation, and avoid losing clients and revenue due to problems with a single platform - whether it is similar to last year's MT4/5 being removed from Apple or MetaQuotes actively announcing that it will no longer process new white labels - "don't put all your eggs in one basket" is not only a good advice that investors should keep in mind, but also applies to brokers.