Full White Label vs. Partial White Label

October 17, 2016

A White Label partnership program is one type of cooperation that a forex broker is willing to make with other parties interested in joining the forex brokerage business. Both parties have a strong interest in developing such a cooperation: the broker will extend its business as the White Label will look for its own clients, while the White Label will benefit from low setup costs and take advantage from the broker’s know-how.

Not all White Label programs are the same, though, as they differentiate based on the elements that are being offered by the primary broker. To be more exact, depending on what the role of the primary broker will be, there are two types of White Label partnership programs: Full White Label and Partial White Label.


Full White Label

A Full White Label means that the one that engages in such a program will basically run the business as a normal brokerage house: run its own trading platform, dealing with opening client’s accounts, deposits, withdrawals, has its own spreads and commissions, and even its own branding.

In this case, the primary broker is making sure all the infrastructure needed is in place and will provide the White Label all the assistance needed. The primary broker gains a fee from the process, and such a fee depends very much on the original agreement: it can be a flat fee or one based on future volume activity, etc.

Some brokers offer Full White Label solutions at zero costs, the idea behind being that by the time the new brokerage will increase its business activity, it will start paying the primary broker. In such instances, the primary broker offers customizable back-office solutions, and also margin requirements that work for the new brokerage house.


Partial White Label

Under a Partial White Label, specific things like account management functions (e.g. deposits/withdrawals) are being left to the prime broker. This way, the Partial White Label can focus on marketing and how to bring more clients to the new business.
A comparison between the two programs obviously makes the second one being easier to implement and therefore more appealing. However, it should be mentioned that from a prime broker’s perspective, costs are pretty much similar.

When it comes to the newly Partial White Label, leaving the account management functionality to the prime broker may raise issues like sharing client’s info and in the end, the two entities will compete for the same clients.

A Partial White Label can also be made under different conditions, with other parts of the overall business being left to the prime broker. The more tasks the primary broker will cover, the move different the program will be when compared with a full solution.

When having to choose between a Full or Partial White Label, the new entity is supposed to take into consideration all the pros and cons and the costs associated with this. Depending on the support being offered by the primary broker, one type of partnership may look more appealing than another.

Comments are closed.