Partial vs Full White Label Solution – A Misconception Cleared!

Source: Fazzaco 2020-08-18

White label and white label provider

When talking about white labels, we have to talk about the white label provider, which is often relative to the white label industry.

The biggest difference between the white label provider and the white label is that the white label provider has a complete set of trading systems and has full authority. The risk control plug-in can be added for secondary development, and the settlement background can be supported. In terms of promotion, plug-ins such as micro-transactions can be added. The white label provider platform has its own independent server and its own liquidity provider without any restrictions.

However, the cost of the main label is relatively high, which is only suitable for foreign exchange brokers with certain experience and certain financial strength.

What is the difference between the main label and the white label? To put it simply, if the white label provider is a full-floor office, then the white label is the shared office on this floor.

Because you are renting a shared office, you need the consent of the white label provider if you want to renovate the office. Moreover, the shared office space is not that big.

Classification of white label platforms

There are mainly three types in China: semi-white labels, full white labels or technical white labels and limited white labels.

Semi-white label platforms mostly cooperate with prime brokers. This model can quickly access the broker’s platform and liquidity, effectively reducing the cost of the white label. Its quotation and clearing are provided by the foreign exchange platform provider, that is, the access is a secondary quotation and the foreign exchange platform provider is cleared, and there is no real connection to the international foreign exchange market. Most of the semi-white label platform operators are only responsible for the promotion and marketing for customers; in terms of risk control, in addition to A-BOOK, they can put the orders of end investors in the broker platform for hedging. Semi-white labels are generally not subject to supervision, nor can they keep customer funds, and are only responsible for the development of market customers. Because they are not subject to supervision, their market credibility is also low.

Full white label platforms, also known as technical white labels, are provided by brokers or specialized white label builders for platform construction, bridging, clearing quotation, server operation and maintenance, website production, and regulatory applications (some brokers will have regulatory licenseing companies, such as cooperation with traditional financial companies) and a series of services, full white-labeled are more autonomous than semi-white-labeled, and are subject to full supervision.

Limited white label means that the functions of the trading software have been deleted. For example, there is no multi-account management system, hedging system, risk control plug-in, etc., and only basic functions such as spread adjustment, account opening, deposit and withdrawal are retained.

There are two ways to structure a white label business in Forex: partially or fully.

As I explain the two, I would also like to make an important clarification: “Partial” does not mean free or offered at a discount!

Unfortunately, over the years, many clueless internet ferrets have come to believe otherwise; that a “partial white label” means a free ride in the branded Forex train. This could not be further from the truth. When you see the word “partial” applied to a white label solution, it is not referring to a partial/lower fee or a free trading solution of any kind. Whereas a “Full” White Label involves two key components, a branded trading platform and the ability to take deposits directly from customers, a partial solution does not. The partial setup does include the rebranded platform (with the name/logo of the partner on it), but not the ability to take deposits.

As explained in the white label section of our website, a partial white label is definitely the easier solution to implement; but if for whatever reason, a private label business does not want to handle customer deposits directly, clients must send their money straight to the licensed broker. This means that the Chinese Wall or complete level of anonymity that exists between the customer of a full white label and the brokerage firm licensing the trading platform is nonexistent for a partial white label affiliate. Nevertheless, the same fees associated with branding the platform still apply to both partial and full arrangements.

What is the Difference in Cost of a Grey Label and White Label on MetaTrader?

Most of the costs for either are associated and paid to the developer of the MetaTrader platform, MetaQuotes. The cost is higher for a white label as the company would need to pay the associated fees directly to MetaQuotes.

The costs are as follows:-

White Label

$5000 setup fee;

$1000 per month maintenance;

$1250 per month for mobile.

Grey Label

-No setup fee as such;

-Co branded fees as per White Label Structure;

-Usually basic fees are charged by WL to Grey Label with extra additional tools and services.

What are the drawbacks of a MetaTrader Grey Label?

The obvious drawback of a grey label is that as a company you are relying on the reputation of another company and their brand. Clients may become suspect wondering why they trade under a different brand which may lead to uncomfortable questions.

It is also worth mentioning that when trading with a grey label it becomes difficult to move clients across servers if the business scales and you decide to move to your own MetaTrader license later down the line.

Semi white lable

MT4

Regulation

Full white label

Main label

Partial vs Full White Label Solution – A Misconception Cleared!

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