Working and earning in the financial markets has become more feasible, especially with the advancement of technology and diversified business models that help you capitalise on the growing demand for investing in financial instruments.
There are various services that you can offer to brokerage enterprises to earn income, and introducing brokerage and white labelling are two prominent domains that offer access to generous incomes if managed well.
Let’s review the differences between these brokerage models and which one suits you best.
Understanding WLs and IBs
White-label solutions are ready-to-use platforms and technologies that enable crypto and Forex brokers to launch their services with minimum hassle and development efforts. These pre-built tools can be customised to the client’s needs and business objectives.
Turnkey solutions are becoming increasingly popular, and white-label brokerage firms reduce your time-to-market, where you can launch your services and compete with market players.
On the other hand, introducing brokers is an entity that connects existing brokers with investors or businesses with customers. This business model benefits personnel and agencies with a comprehensive network of investors and trading professionals.
In exchange for providing end-users, Forex introducing brokers get a cut from every converted lead, with other compensations based on trading activities and volume.
Main Differences Between White Labels and IBs
It is hard to tell what the best service model is between introducing brokers and white labels. The decision relies on your objectives, skills and capital. We can compare WLs and IBs in the following way:
Resources and Objectives
Forex white label services offer technological support and tools for brokerage platforms to improve their offerings, connect with liquidity providers, manage their operations, and optimise their trading activities.
Introducing brokers utilise their connections with investors and traders who are interested in financial markets and use a dedicated link to register new clients on the broker’s platform.
Software and Tech Stack
White-label providers use their advanced technical knowledge and experience in software development and cloud hosting to offer the best trading and brokerage tools to their clients. This includes CRMs, database management, analysis tools, payment systems and more.
IB in Forex requires operators to have a database of interested personnel with significant capital who want to pursue financial gains in financial markets. Introducing broker programs might be pricier than WL because they can help convert wealthy investors into regular clients.
Customisability
White label technology is more flexible than the introducing broker program. These pre-built platforms can be customised to fit different business needs, such as payment methods, supported cryptocurrencies, or Forex pairs.
On the other hand, IBs provide less flexibility in these terms because their offerings are based on the trading platform’s features.
Conclusion: Which One is Better?
Introducing brokers and white label solutions are lucrative approaches to capitalising on the growing demands and capital in financial markets. Both services allow you to earn commissions and fixed amounts in exchange for improving business performance and potential.
