We talk about cost optimization when choosing a trading terminal.

Which is cheaper, MetaTrader or White Label?

Starting a new business in the FORCES market, many entrepreneurs seek to do this as efficiently as possible by optimizing their costs for launching the company. This is primarily due to the fact that the foreign exchange trading market is extremely competitive and, although many are willing to try to develop on it, far from all this succeeds. This article will focus on ways in which you can avoid or minimize the costs necessary to launch a FOREX broker.

At the moment, FOREX is a fairly high-tech industry, as most of the transactions occur online. Accordingly, when planning to create a brokerage company, you need to build on the unconditional need to create your own technical infrastructure – which becomes extremely important if you are aimed at long-term business development and decide to provide your clients with really high-quality trading solutions.

Trading platform selection

The cornerstone at the launch of the FOREX broker is the choice of a trading platform. It is this decision that will determine the further development of the company and the composition of the necessary technical tools.

The undisputed leader among trading platforms today is MetaTrader from MetaQuotes. About 80% of players in the FOREX market use MT4 platforms and, to a lesser extent, MT5 platforms. The platform was launched in 2005 and very quickly gained great popularity due to information content, simplicity, an abundance of tools and reliability.

Next come trading platforms, which are much less popular, developed mainly by the FOREX brokers and technical solution providers: JForex by Dukascopy, Ninja Trader, Zulu Trade and others.

MetaTrader – simple but expensive

In general, for a newcomer company, the ideal solution would be to start with the MetaTrader platform, which, due to its simplicity, convenience and promotion, is much easier to attract customers than to use more exotic trading platforms, albeit with great functionality. However, a rather large obstacle to the acquisition of the MetaQuotes trading server is its price: from $ 75 thousand. Effective server maintenance is also expensive – according to our estimates, for the first year of operation, the costs of a new company that is going to buy a MetaQuotes server will be at least $ 180-200 thousand.

Not every start-up company can afford to invest in server purchases in such volumes, especially since there are a number of solutions that can optimize this expense item and free up and direct financial resources to other areas.

Save on label

One of such solutions is the White Label program, which can significantly minimize infrastructure costs and at the same time get full functionality for comfortable work. In short, the meaning of the White Label is to provide all the necessary “stuffing” so that the client company can effectively operate on the market under its own brand.

The benefit of using WL by a small start-up company amounts to tens and even hundreds of thousands of dollars, since there is no need for serious infrastructure investments. The broker simply pays a fairly modest commission to the provider company, at WhiteLabelsFX this cost is a fixed $ 5,000 and does not depend on trading.

The specifics of choosing the right White Label provider is precisely to find a supplier of truly reliable and effective tools on the most favorable terms. Almost all large brokerage companies offer WL programs, but as a rule, they differ in rather ordinary characteristics of solutions, in addition, the client company is dependent in many aspects on the WL provider company, and the price of this program is often absolutely unreasonably high.

Conclusion: Buy a white label from an independent provider

As practice shows, a much more profitable solution is to choose a company – an independent technology provider and buy WL from him. These companies are usually truly customer-oriented (unlike large forex brokers) and are much more loyal in terms of pricing. The market of solution providers for FX brokers is also very competitive, so in order to gain a foothold in it, players have to offer products that really help customers to be present in the market long-term and effectively.