March 22, 2023


What is White Label Forex-a Complete Guide

White Label Forex

As the forex market has been continuing to expand as an attractive place for traders, there has been a 14% increase in the average trading volume between 2019 and 2022. This is a rough estimate based on the Bank for International Settlements’ triennial survey and on top of that, the growth in average trading volume for the last 3 years was 30 percent. The numbers are clear evidence for the rise in the number of traders who are actively engaged in forex trading. Each and every new trader who enters the forex market is a potential client for a forex broker. The forex brokerage industry has also been growing alongside the forex market. And white label forex is opening up new opportunities for every entrepreneur aspiring to become a forex broker. So, today we will help you out with a complete guide on white label forex and its endless possibilities.

What is White Label Forex?

In simple words, white label forex is a service model using which one can easily set up their own branded forex trading platform by using the very same software infrastructure that is owned by another leading broker. The primary broker will function as your white label service provider by allowing you to use their trading platform and back-office panel. Developing a trading platform from scratch can be a lot of work for a beginner broker. But the entrance to the forex market as a broker has been made easier with white label forex solutions. You will be collaborating with a well-known forex broker with experience and expertise in the forex industry. They will act as your guide and take you through the steps that are needed for establishing your own brokerage.

One interesting fact that you may not know yet is that many of the top tier forex brokers that are ruling the market space today, have also availed white label forex solutions in the past while starting their journey. They entered the forex industry as a white label forex broker and built their brand name with consistent efforts. This way they were able to grow and expand as an independent forex brokerage with their trading platform over the years. This means starting out as a white label broker will never limit your prospects, if you are planning to emerge as a top-tier forex broker in the future.

White Label Forex Vs Introducing Broker Program

As we mentioned before, the goal of white label forex is to help beginners to start their own branded white label forex brokerage, whereas the goal of IB programs or Introducing broker programs is to bring more clients to the broker’s platform by acting like their affiliate or agent. An IB or Introducing broker is only in charge of introducing the broker platform to potential clients and helping the broker in growing their client base. An IB will be using their social networks, websites, blogs, social media pages and so on to promote the broker platform that they are associated with. They will be compensated with commission based on how many new clients they end up persuading to join the broker’s platform.

The benefits of an IB program is limited to commission and your role will be limited to being a promoter for the forex broker platform. On the other hand white label forex programs are much wider in scope and here the goal is to become a branded brokerage yourself with your own client base and trading platform. You will be using the technological infrastructure set up by another broker but still you are the one who owns the business here. The trading platform will be having a brand name of your choice which means you get all rights and benefits that a business entity gets by offering services to clients.

Benefits of White Label Forex

Helps to Cut Down the Initial Cost

Like any other business model, establishing a forex brokerage also requires a large amount of capital to begin with. The exact amount of capital needed will vary based on what kind of platform you want to offer to your clients. But this overall cost can be cut down to a great extent by simply opting for a white label forex solution by finding a broker who provides white label forex services. There will still be some initial setup cost and monthly platform maintenance charges you will have to bear, but it is a lot less in comparison to the capital that you will have to spend for setting up a forex brokerage all by yourself.

An Easier Entry With the Backing of an Expert

As we said before, white label forex programs are designed to provide an easy entrance to the forex brokerage industry. Some forex white label service providers will help you to get started within weeks with a simplified sign up process that can save a lot of time and effort on your part. Because the forex white label solution comes with a trading platform that is already being used and maintained by experts, you won’t have to worry about all these complex procedures and processes. They will be providing you full support from background which sometimes includes training, advice and assistance with promotional activities.Read More

What Are MAM and PAMM Accounts?

MAM and PAMM Accounts

What Are Managed Forex Accounts?

Managed forex accounts are MAM and PAMM accounts which are controlled or managed by professional traders on behalf of the account holder. In a managed forex account, instead of placing trades on his own the account holder entrusts his funds to the money manager in the hope to leverage the expertise of the professional trader. In managed forex accounts, the investor gives a partial power of attorney to the account manager and the profits or losses will be shared between the account holder and the manager depending on the agreement between them.

The MAM and PAMM systems are designed to make the process of investing with a professional money manager more accessible and convenient for investors. It allows them to benefit from the experience of professional traders without having to go through the hassle of setting up and managing their own account.

What is MAM

A Multi-Account Manager (MAM) is a trading system that allows an experienced trader to handle multiple forex trading accounts simultaneously, while managing them as a single portfolio. The managed accounts in the MAM system are linked to the main account. Thus, all the trading orders that the money manager executes on the master trader account are distributed on the connected accounts. But the specifics, like stop-loss, take-profit levels, position size are altered depending upon the parameters set by the investor. MAM accounts provide greater flexibility to account managers allowing them to set different trading conditions and restrictions for each individual account. MAM systems are commonly used by professional money managers and institutional traders, but can also be used by individual traders who want to manage multiple accounts at once.

What is PAMM

PAMM, or “Percentage Allocation Management Module,” is a type of investment strategy that allows multiple investors to pool their funds together and have them managed by a professional money manager. With a PAMM Forex account, the money manager, also known as the “account manager,” has complete control over the trading decisions and execution of trades for the account. The manager is then able to make trades for the entire account, using a strategy that is tailored to the combined investment goals of all the investors.
The returns generated by the account are then distributed among the investors according to their percentage of the total investment. So, the more you invest, the greater the potential returns.

Difference Between MAM & PAMM

When it comes to professional money management, PAMM and MAM accounts are both really good options. But there is a difference between the two!

PAMM accounts are like a private investment club where multiple investors pool their funds together and give the charge to manage it to a seasoned trader, who will use his expertise to manage the combined pool of funds with the goal of maximizing returns.

MAM accounts allow professional money managers to manage multiple accounts simultaneously, in an efficient manner. Instead of having to execute trades individually for each account, a money manager can make trades for multiple accounts at once. MAM accounts also provide greater flexibility for money managers, as they can tailor their trading strategies and risk management to the specific needs of each individual client.

Therefore, the significant difference between the two is that PAMM focuses on pooling the funds of multiple investors to maximize returns while MAM focuses on managing multiple accounts through a single terminal at once. Read More