Introducing Broker (IB) vs White Label

What is an IB?

An Introducing broker (IB) is a simplest form of partnership between an individual (or a business company) and a Primary broker. The role of the Introducing broker is to solicit clients for the Primary Broker. By doing so an IB earns commission.

– NFA Glossary:
“Introducing Broker (IB) A firm or individual that solicits and accepts futures orders from customers but does not accept money, securities or property from the customer. An IB must be registered with the Commodity Futures Trading Commission and must carry all of its accounts through a futures commission merchant on a fully disclosed basis.”

The process of referring clients to the Primary Broker can be done in a variety of ways, but the key component of a successful IB
business is to have the means, contacts and influence on the trading audience. Who can become a successful IB:

– investment companies, brokerage firms with a base of clients
– successful individual traders, money managers, investment advisers
– owners of financial websites, trading rooms, signal services, discussion boards, forums etc with good visitor traffic
– any other individuals or companies that want to start own Forex business and are willing to put in good work and efforts to achieve goals.

The process of applying for an IB is simple and requires filling out an IB application with the Primary broker and receiving a unique Introducing broker ID, reference links and promotional materials to start soliciting clients.

How an IB works?

When a client registers an account with the Primary Broker via a referral link which contains an ID of the Introducing Broker, or when the client purposefully mentions an IB name when opening an account, in both cases the IB receives a commission.
Two common types of commission structures include a choice of:
– a flat fee for every referred client. This fee is can vary from $50 to $400 at times.
– spread sharing, where an IB constantly earns a small portion of the spread as long as his referred client keeps trading with the Primary Broker.

What is a White Label?

A White Label is a step up comparing to the IB. A White Label program will suit qualified and experience individuals (or companies) who want to become Forex brokers and create own brands in the Forex industry.

– NFA Manual / Rules
“White labeling refers to the practice of leasing the right to place the lessee’s name on and market another firm’s trading platform as its own and then passing the trades through to the lessor. In the typical while labeling arrangement, the lessee’s customers do not have a contractual relationship with, and in fact may be unaware of, the firm that owns and operates the platform. For regulatory purposes, the lessee is the counterparty to the customer’s trades and the corresponding transactions with the lessor are separate transactions between the lessee and the lessor to hedge the lessee’s customer obligations”.

The benefits of White Label brokerage programs include:
– fast start of the online business with extensive continuous support from the Primary broker
– avoiding the costs of setting up and running a full dealing business model, which requires licensing
– getting first-hand experience in the business, preparing to run an own independent brokerage
– working with own clients, instead of referring them, and being able to control own business to a larger degree

How a White Label works?

Running a White Label brokerage is pretty much the same as running a regular brokerage business.
You’ll keep a website about your brokerage services, a fully functional trading platform, you set own dealing spreads/commission and work with your clients: open accounts, accept deposits/withdrawals, monitor reports etc (Full White Label), or leave account management functions, including deposit/withdrawals to the Prime Broker (Limited White Label).

The Primary broker is always ready to supply a White Label with everything needed for starting the business, even make a new website if needed.
In addition, the trading platform will be branded with your company name and logo, protecting your privacy with the Primary broker, so that traders may actually never know who is the real owner of the platform.
What a White Label cannot control is:
– currency symbols available for trading
– the opening and closing of the market trading hours
– everything regarding the security of the system, which is controlled by the Primary broker.
The Primary broker will run an extensive back-office support, will handle all end-of-day reports and other trading related and administrative activities.
A White Label earns income from each client’s trade. The higher the trading volume of White Label clients, the higher the income revenues. The revenue & compensation models for the White Labels are more flexible and have a variety of options to choose from, which will be specified in the White Label partnership contract.

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72 Comments

Hi,

We are a cyprus based ECN/STP Prime broker regulated by CYSEC. We are looking for Introducing Brokers and Master IB’s who have good experience in Forex Trading to do business with us. We pay hefty commissions to our partners.

We are looking forward to do business with you.

Contact Detail
Email id- [email protected]
skype id- ritesh_fcm
Website- http://www.fcmforex.com

Regards
Ritesh Jain
Business Development Associate

Hi I would like to speak to any broker who is a white label of Forex.com. Please contact me so that I can do business with you. You can reach me at LDGRANT at YAHOO dot CO dot UK

Hi I want to open an affiliate with Forex corporate. did anyone try them? anyone can give me their feed back? please and much appreciated
Aras

We are prime forex brokers and promoting White lable and IBs, if interested please mail me [email protected]

I know that FinPro Trading is offering IB’s and other individuals with a small client base (minimum five) around the world, an opportunity to start a Forex Brokerage Company (White Label Partnership) at ZERO cost! This means: NO setup and NO maintenance fees.

You will receive all the services you require to build your own brand. IB’s have to pay most of their profits through spread sharing back to other Prime Brokers. But FinPro allows you to retain most of the profits by asking you to become a Broker yourself.

Services Include:

• Customizable back-office
• FinPro Station and FinPro Web configured under your brand
• Full account creation options
• Management of introducing agents, external managers and client profiles
• Complete access to Reports
• Full control of your spreads and commissions and rollover charge
• Credit / Debit operation
• Customizable margin requirements that work for you
• Full Back office training provided

Please visit: http://www.finprotrading.com and ping one of the available sales teams via chats. Or directly call on +44 (0) 20 3287 7332.

Hello

Land-FX is looking for an Introducing Brokers who are based in Singapore.
We hope to make Business with you.

Please do visit our page at http://land-fx.com/
Please do also email me at [email protected].

Thank You!

Hello

I am looking for Introducing Brokers for making a business together.
Let me know if you are interested.

Await your answer.

http://goo.gl/forms/wQAFj1mZEx

Hello.

I’m looking for IB´s. with the most competitive commission plan a Forex Broker has ever offered.

Kind regards

Dear sir,
We engaged in Providing Forex white label and Forex Brokerage related software services Internationally offer to money managers, affiliates and Introducing brokers and the ability to control their own destiny relative to their business.
You can start your financial brokerage career with the benefits of our software services.
If you are,
IB of any International brokerage firms
Money Manger
Portfolio Manger
Forex Account Manger
Individual Trader
You can transform yourself into your own Forex Brokerage Company to enhance your growth by use of latest technology product at competitive rates.

For Details contact at
[email protected]

We are at XD Markets, offer the white label solution for ALL. There is no setup fee require. Our White Label solution allows the Partner to offer multiple trading systems (xStation, xBinaries, xMobile, xTab, xStore and xSocial) as an integrated and comprehensive trading solution which satisfies all trading requirements of the client.

Contact us if you need more details about our white label or visit us at http://www.xdmarkets.com. Thank you.

Hai Mr.Guru

This is Sampath from india. could you tell me top 10 prime forex brokers in the world.

Hi All, I am the Sale Agent of Meta quotes .Every one free to ask me the question about MT4,MT5 and Team wox .

my ID is [email protected]

Thank you ,

I don’t disagree with your comments. However, wouldn’t it be possible for a white
label broker to offer to its clients the same prices given to him by the primary broker
(no mark-up) and earn revenue only from the primary broker through some form of revenue
sharing arrangement? If that is possible, wouldn’t that mean that the WL broker’s revenue
is actually sourced from the primary broker and not from the clients?

Its clients. A Prime broker provides the technical side of the deal – everything needed to offer trading services (e.g. trading platform, websites etc.) – while without clients a White Label cannot earn anything.

Where does a WL gets its revenues from? The primary broker or its clients?

http://www.fxgsol.com Forex Global Solutions provides cutting-edge technological solutions for enterprise and start-up FX & CFD brokerages

White Label is expected to be more profitable, since there is usually more business commitment involved, which results in higher number of clients. Also, the % of profit sharing/commission is expected to be higher with WL vs IB.

Hello
Trader Guru
I want to know that which is more profitable IB or WL and how ?

Hi this is sridhar Brokerguru ure message is so useful thanku

1. If you want to only run a website as a IB and refer
all clients to the Prime broker, then you don’t need any license.
If you want to register a company that’s going to be involved in
handling clients’ money, then it’s advised that you get a license.
(I’m not aware of Malaysian laws and requirements for investment companies, but
in general the practice is that you just need a company registration, while further licensing is
not mandatory).

2. “Investing and finance” would be the industry field for this
business.

3. Correct, as long as you’re not handling clients’ funds, you don’t
need a license. It’s a general rule, as I said, and I believe it applies to
Malaysian businesses as well. You can double confirm it with http://www.sc.com.my/

Hope this helps!

Hello Guru,

First of all, thanks for bringing these useful information to public. Really appreciate.

I am from Malaysia, I am planning to become either an IB or WL of one Prime Broker (I already knew which prime broker to deal with), however i still have some doubts/questions and hope you can provide me feedback and answers.

(1) to become an IB, do I need any professional license in Malaysia?
(2) If I just want to become an IB and run a company for my IB business, do you know which field do i need to register to run the company?
(3) I read all the comments above and one of the comment from you was that if the WL do not involve in money depositing/withdrawal, then no local license required. The word “local license” means professional license right? Is it the same in Malaysia? If I become a WL of a prime broker and all the money depositing/withdrawal will be handled by the prime broker, then i do not need to get professional license to run my business, is it?

Hope to hear from you soon Guru, thanks for the information about this.

thanks and Regards

In Lebanon you’ll be looking to get information from Banque Du Liban (http://www.bdl.gov.lb/)
And then register your business & get a license according to their instructions.

Hi all
I have read all the comments – but did not understand the subject well
We want to open a brokerage firm in the state of Lebanon :
Who can give us license to open our brokerage firm in Lebanon ?
Is the Lebanese government??

Is there a company or organization is doing all the procedures?
Is there a company or institution that these services on our behalf?

Please reply
Thanks

Thank you!

1. There is no such list of prime brokerage firms, but there is a good way to find them by checking the “years in business” factor.
Those brokers that have been in business for 7-10 years are the highest potential candidates.

2. As a White Label you would usually want to handle deposit/withdrawals for your clients. But, if you don’t want to, your prime broker will gladly take care of it, though in this case it might be more difficult to protect/cover your affiliate/WL relationships with the broker? and your clients might just as well consider dealing with the prime broker directly.

3. They are the same with any type of broker, be it ECN or a market maker.

Hi BrokerGuru,

In advance i want to thank for your help. As an experienced fx trader, I would like to set up a white label business to be able to offer an online financial trading platform to the clients. For this purpose, I am looking for the right primary brokerage firm. I have 3 questions as a start:

1- Is there any list of prime brokerage firms which make partnerships with experienced professionals who hasnt set up a company yet.( Most of the prime brokerage firms looking for “financial institutions” for their white label products)

2- As a white label company, I dont want to handle any client deposit/withdrawals and leave this responsibility to the prime broker. Do I still need to get a licence in UK?

3- What are the main advantages and disadvantages of ECN white labels?

Kind regards

Hello,

sorry, we don’t know about the exact registration procedures for a WL broker in Pakistan.
Please contact Securities and Exchange Commission of Pakistan (SECP) at http://www.secp.gov.pk/ to learn about the requirements.
(SECP service desk: http://www.secp.gov.pk/servicedesk/index.asp)

I want to register a white label forex company in Pakistan. Can u plz tel me procedure plz

Hi Gogy,

I heard the name TeleTrade quite a few times, but surprisingly each time I wasn’t able to find their website, until today (TeleTrade-dj.com)
Needless to say that there is very little known about this broker, even though they operate since 1994 (according to the company website).
The broker is not regulated, and there is very little to no regulation present in Russia, where the company was found.

I haven’t heard anything bad or good about them, but hope to hear some reviews as soon as we create a Review page for them here.
Sorry for not being able to help much with this question.

Hi BrokerGuru,

I plan becoming an IB for TeleTrade – have you heard anything about them? are they serious? I can’t find them listed on your website…

Thank you very much!
Gogy

Thank you Rick,

I’m not familiar with Norway registration requirements though.
At first, please check the regulatory body in Norway:
The Financial Supervisory Authority of Norway – http://www.finanstilsynet.no
The have their own registry which you might want to start with. I’m sure they’ll also provide all necessary guides and references to run a Forex business in Norway.
All the best!

hi there guru, you seem to be an expert of the subject. I would like to start a company in norway. can you please tell me what are the financial requirements their?. how much start up cost will i need to come up with to be a wl broker?. i would greatly appreicate your input.
Thanks in advance.
Rick

Hi,

we can’t provide advice about the best broker to choose. We must remain 100% unbiased.
Thank you for your understanding!

HI BROKER GURU.

im planning to start up a comp own my own.. i want to earn via profit sharing and also lots from the prime broker. i need your advise.. tnx..

White Label is an affiliate branch of a prime broker.

what is use of white label? i still dont undrstnd.. m totally new in this. and plz can you explain me full structure of fx company?

Hi,

I’m sorry we can’t recommend brokers be it for trading or WL. We’re required to remain 100% unbiased towards all companies. Thank you for your understanding!
Try looking for brokers who have been in business for at least 5-7 years.

Hi. Broker Guru,
i m new in forex trading. just i have doing a course about forex. After this i want to start as a IB or White label borker. tell me some thing about this. i m from india. how i get WL. any good company tell me.

no you don’t, since you won’t be handling client’s money.

i have a qution if i want to be an limited WL that deposit and withdrwal will be handle by my prime beroker do i still need a local license to fund ???

Yes, it’s totally fine. I wouldn’t worry about this even for a short moment. In fact, majority of brokers we know today are white labels of some of the largest brokers (e.g. Forex industry leaders).
Since a While label is a fully established separate entity with all the rights and responsibilities, you’re equally fine trading with it as with any broker.

hi guru..is that ok trading with a white label company?is that our money guaranteed?

Up to this date we haven’t heard about registered brokers in Bangladesh. Sorry. Hope we’ll hear from them with time.

Are there any broker provides currency trading in Bangladesh? we have a site bdstock is for stock trading but planning to expand to currency trading with IB partnership.
Thanks for all your advice

There are risks in any business. From my experience I can say that you sign a contract with a company to become a White Label, and from that moment you’re running a full business with all duties and responsibilities.

The cost question is unique for each country and each situation. I don’t know if anyone will be able to answer you about the costs besides the company you select to do business with.

Hi
is there any risk to loss money if we become white label partner?

Thanks

Hi BrokerGuru,

thanks for this useful information, i need information basic steps & costs to become a white Label in Indonesia. is White label have a Risk losing money? how about if the server down? is the client will sue us? i need to know the risk if you can provide this information. many thanks

Sorry, don’t have any information about them.. Plus their site doesn’t appear to be operating for public. It asks to login.

hi BrokerGuru,

Do you know about GVF(Global Venture Financing) broker ?
Can i have more information regarding this broker?

Thanks

Yes, IB brokers can be found in the search:
http://www.www.100forexbrokers.com/fx/broker_search.php

Search criteria as follows:
Additional information:” Introducing broker”

While the information about While label brokers isn’t easy to obtain. Since a White Label dealing belongs to a higher level of partnership between a prime broker and its representatives, the new brand that they create together – a white label – will be looking to develop as a unique entity, and thus its information about the White label ties will be always protected by both parties.

You need to seek registration & regulation in the country(s) where you’ll be doing business. If you’re located in China, you’ll need to seek registration in China. If you’re located in UK, you need to register with FSA UK (www.fsa.gov.uk).

(If your prime broker is located in UK and you, as an IB, located in China, you need to register your business in China).

I am planning to start a white label IB business. My company located in UK but all my target customers are all in China only. Will I need to apply any licence in UK? Or I just need to satisfy the regulation in China is ok?
If I need to apply licence in UK, any ideas what kind of licence I will be looking at? Thanks for your help!

Yes, you can set us an office of your own.
Since Forex trading is done online, in order to be in the Forex business and offer trading to clients you must have a website.
Unfortunately, we can’t recommend brokers here, I’m very sorry. We keep an unbiased neutral position towards all brokers.

As an introducing broker can you set up an office of your own? Is it a must you own a website? Can get me good brokers that i can become there introducing broker.

You mean a broker in Nigeria, which you can become a White Label for?
Sorry, I don’t know, we have no Nigerian brokers listed on our site so far.

hi brokerguru

please do you know the body that issue the white label license in NIGERIA imean forex broker

It’s not difficult to become a White Label, especially when you always can rely on support from your Prime broker. Although it’ll take more time and resources, comparing to a simple IB.

None of the Prime brokers will disclose to you, me or anyone else the names of their White Labels, because this information is protected in the interests of both parties. But sometimes, traders can figure out some connections, for example: Universal FX is a WL for ACM.

There are quite a large number of Forex brokers nowadays, who are in fact While Labels for other brokers, but we won’t be able to find it out, and there is no particular need for it – a white label is a complete & functional solid business model, fully capable of doing Forex business alongside its Prime partner.

Is it that easy to become a White Label?
What are the best companies you know who are offering WHite Label solutions? Also Do you know some successfull forex companies who are just WL?
Thanks

The initial capital for a White Label could be anywhere from $5000 to $10,000 or sometimes more. It varies for every single broker. The broker, which you want to become a White Label for will gladly tell you How much it costs.

You don’t need any clients to start a White Label. Basically, your partner broker helps you to start up a new business, and then you start bringing clients.

what is the requirement for become white label. mean funds requirements, how many clients should initially etc. thanks.

You only need a local license.

However, if you want, you can always later open an office in UK or US and apply for a regulatory status there.

If we need white label in other countries like india or pakistan, do we need to register in usa or uk ?, or we need local license ?

Basic steps & costs to become a White Label in US:

Exams
You should obtain a licence by taking the Series 3 exam (administered by FINRA) and Series 34 exams (required by NFA, administered by FINRA). Total cost: $105 + $70.
Reference link: http://www.finra.org/Industry/Compliance/Registration/QualificationsExams/RegisteredReps/P011096

Licensing
The next step is to obtain a license from CFTC and NFA. Apply for a registration as a Futures Commission Merchants (FCMs) or Retail Foreign Exchange Dealers (RFEDs). NFA membership comes at a yearly cost/month: from $750 for an IB to $50,000 for a Retail FX dealer.

Reference link: http://www.nfa.futures.org/NFA-registration/NFA-membership-and-dues.HTML

Further NFA rules & requirements:
General
Annual FCM and RFED Requirements
Financial Requirements for FCMs and RFEDs
FCM Applicants
RFED Applicants
Anti-Money Laundering
Forex

Some useful facts and figures:

“Setting up your own trading system will take many months and would cost over $150,000-200,000 in software licenses and technical expenses. Experience shows, that most companies need from 6 months to 2 years to complete the preliminary stage and to start operating in the market.”
Source: forex-metal.com

“The cost of MT4 is $5,000 onetime fee to set up your WL and $750 monthly technical support.”
Source: bmfn.com

“Normally a USD 6000 deposit is required in order to start an ECN White Label + USD 5000 in order to get the MetaQuotes license.”
Source: fxopen.com

white label is a lease…

Hello all
i am new in this field. i read all features but i want to know how can we get WL on lease?
what is cost of their services?With whom i have to connect ?
Zeb Noon

Hi rex,

a White label can choose either option:
– to handle all client deposit/withdrawals
– or leave this responsibility to a Prime broker.

Hi Brokerguru !
this is rex..
I have one question regarding White label broker, become white label broker, the customers funding is for this WL or the prime company?

Thank you!

Yes, you’ll need to carry out some initial start-up expenses. They will be significantly lower than expenses of setting up an independent brokerage company. The cost of setting up a White Label business is discussed with the Prime broker.

Hi Brokerguru !!
I’m Xiao Kang from Beijing, China.
I like 100forexbrokers website having lots of usefull information,
for all newbie & experience traders.
you are doing really apprizing Job man !!
I have one question regarding White label broker ;
To become white label broker do need any deposit money ?

The IB model is simpler: less paperwork and partnership contracts. You simply refer clients to the broker via your referral link (will be given by the broker), or have your clients mention you as a referral when opening a live account with the broker – your reward comes from the number of referred clients.

The WL model is more complex and requires you to become a broker with all the paperwork, platforms, customer support and other things attached – you’ll be offering Forex brokerage services to your clients, who may or may not know which of the Prime brokers your represent, since everything will be branded under your company name and logo. That’s how prime brokers expand the business and reach out to more clients – through the network of their White Labels.

i have studied about IB and white label partners. But it is not clear to me. who is more better to do work with them means white label or IB?

Hello,

Do you kown white label or IB brokers ?

Thanks