It is difficult for forex brokers to reach out to their clients since they always strive to increase their profit margins. Most brokers commonly use conventional marketing methods to overcome this problem. However, did you know that some brokers also work with third parties to increase clientele? Brokers can also expand their client base more effectively and boost their revenue in a shorter period of time with less effort by using both options: Introducing Broker and White Label. In this article, we highlight the differences between IB and WL.
The introducing brokers' program brings new clients to the primary brokers. The more clients IBs get, the higher the reward. Both corporate clients and private traders can act as introducing brokers, and their main focus is partnering with top-rated traders, money managers, financial advisors, and financial websites. New clients join a brokerage firm, and IBs get rewards based on the activities of the new clients.
The responsibilities of an introducing broker include the following:
A general definition of IB obligations is the duty to resolve all client issues so that the trading process is exceptionally simple for the client.
A well-designed forex broker partner program is crucial for attracting and retaining introducing brokers. There are two types of bonuses: fixed ones and percentages. Commissions from trades and referrals are more prevalent types of rewards. Referral systems can become difficult to manage, and mistakenly paid rewards can ruin all the structures. How can business owners avoid such a problem? Businesses can handle their referral programs using CRM systems tailored to brokerage needs. A CRM solution of the new generation, such as B2Core, manages referral programs up to 30 levels deep.
White labeling is a business strategy that has recently gained significant popularity. It involves rebranding a product or service created by one company and selling it under another company's brand.
White labeling refers to taking a product or service created by one company and rebranding it as if another company produced it.
As a result, White Labelling is one of the best ways to get started in the Forex market – 63% of beginner brokers prefer to start with it.
The most widespread White Modeling option is connecting trading platforms without a license. Beginner brokers need help to afford licensed components, which cost over $100 000. They need to purchase a license and incur regular updates and improvement costs. As part of the WL model, brokers directly provide services to brokers' clients. Therefore, they need to ensure that the trading servers are powerful enough.
The primary goal of introducing brokers and White Label businesses is to acquire new clients who will trade on the direct brokers' platforms. Increasing the volume of trading on the forum will result in higher revenues for the broker and greater profits for you. They differ primarily in their functions and degrees of autonomy. In contrast to Introducing Brokers, who merely act as a conduit between existing brokers and their traders, White Labels are independent companies with more control over their clients.
A White Label program has numerous benefits, as we have seen. Additionally, as we have seen, it is not uncommon for brokers to cheat their IBs and pay them less than they should. The White Label offers a wide range of technology and assistance without requiring you to open a brokerage yourself, which can be daunting. Launching a White Label has proven very popular as a fast and straightforward way to enter the Forex brokerage market.
Brokers want to enhance their brand's reputation and expand their business in the financial industry. EnclaveFX is here to empower you with our world-renowned White Label programs. EnclaveFX has established itself as a leading provider of White Label solutions, catering to financial institutions, brokers, and other entities worldwide. Contact us today to discuss how EnclaveFX can help you achieve your goals. Let's create a winning partnership that drives growth and sets new standards in the financial industry.
Introducing Broker and White Label are similar; they aim to acquire new clients to trade on the Main Broker's platform. White Labels and Forex Introducing Brokers Program refer new trading clients to their Main Broker's platform. They both earn revenue based on the trading volumes of their clients. The more those clients trade, the more income the broker earns. A broker's success is determined by how active their clients are. High client activity and volume mean higher profits for the broker. The IB or WL makes money when the broker does.
