The sphere of finance and trading for many is associated with bureaucratic difficulties and delays, but there is a way to get around formalities and run your business in a financial niche in 10-15 days. This method is quite legal and relatively inexpensive, contrary to what most readers now think.

It will be about opening a white label business from WhiteLabelsFX. Surely, many of you have heard this term, but do not fully understand how the system works, especially in the financial environment.

The principle is simple: a company with a run-in product and a proven business model provides other companies with a turnkey solution for launching a similar business. At the same time, the company, the recipient of the service, works completely under its own brand and its customers do not even suspect that in fact the operational support of the product is provided by a third party.

What kind of business are we talking about?

When it comes to business in the financial markets, the first thing that comes to mind is opening your own brokerage company. The problem is that the competition in this market is too high and people mostly trust the old brands.

Fortunately, there are many other ways to make money in forex or binary options. One of the rapidly growing relatively new market segments is copy-trading. A number of analysts predict that in the future the volume of this sector may directly exceed the trading from which it grew.

The fact is that all participants in the trade can be divided into two groups: professional investors and retail customers (usually seekers of quick and easy money). The latter in the financial market are much larger.

These people are usually not experienced enough to independently take profits from the markets or simply want to earn income, minimizing personal participation.

Platform for automatic copying deals

Copy-trading – a system of automatically copying transactions from the accounts of experienced traders – provides them with this opportunity. No need to learn to trade on your own, no need to follow a rapidly changing market, just choose the right trading strategies and observe, taking a passive part.

How is the business model?

A private or legal entity enters into a partnership agreement with a valid and respectable brokerage company. After that, the white label solution provider integrates the copy trading platform with the broker’s trading platform.

Thus, a client who wants to use the copy service of traders must register an account with that respectable brokerage company (or can connect an existing account).

The scheme is as comfortable as possible for investors, since the funds are transferred to a financial institution that has the necessary license and is regulated by the state. On the other hand, the process of organizing and starting a business is greatly simplified, since everything is created on the basis of a ready-made ecosystem.

The income of the owner of the white label license is generated from the commissions from the sales turnover of customers. A brokerage company withholds a commission from customers who copy transactions or trade independently, and then pays part of this commission to partners.

At the same time, as mentioned above, there are no additional costs for the investor – you do not have to pay a subscription fee for a subscription or part of the earned profit.

How much can you earn on this?

Relying on internal average statistics, we can build the following financial model:

If there are 100 investors with an average deposit of $ 1,500 and provided that the commission on one trading lot is $ 5, the monthly fee will be approximately $ 20,000.

Whose deals will these people copy?

You can offer investors a ready-made database of trading strategies that come with a white label solution by default.

If you have your own base of experienced traders, you can offer them to become participants in the project and receive additional remuneration for this (share with them a certain part of the commission).

In addition, you can only provide your own trading strategies for copying to investor accounts.

Transaction costs?

A significant advantage of working with a white label in low transaction costs: since partners are provided with a finished product, the software supplier is fully responsible for operational support. You do not need to pay for product development, maintain staff and own servers.

The partner immediately receives a work product and a business model that has been tested on thousands of customers, as well as answers to his questions on starting a business and finding clients. At the same time, it is quite possible to start a business in two weeks, instead of 6-12 months, which will go to create and test your own platform with basic functionality.

The only thing needed is a customer support service. However, at first it can consist of one person.

How to promote a product?

Now that we’ve figured out the process of launching a white-label copy-trading platform, the question arises: where to find the very first 100 customers to earn $ 20,000 a month?

The most effective today are two ways:

– attracting thematic traffic (people interested in trading) through advertising on trading resources, social networks, forums and search engines

– Attracting general traffic through advertising a free training course where you can turn students into customers

For comparison, in English-speaking Google, users make more than 20,000 search queries daily for queries such as “trading signals”, “copy trading” and “social trading”.

Currently, the Metatrader platform has been translated into Russian, English, Chinese, Spanish, Portuguese, Arabic, French, Thai. New localizations are added on a regular basis.

White Label is a convenient and economical option for a financial startup, but if the business grows, then you can move on to the next stage and think about creating your own brokerage company. The good news is that you don’t have to start from scratch – you have been working under your own brand since launch.