White label products are not something new. Long before the mega world of stock trading has been available, the most cunning of our businessmen forefathers have already taken the idea of white label trading and went to the bank with it all without the assistance of a white label trading software.
For each big name brand out there, there will always be a cheaper version of it trying to squeeze into the market. This is, afterall, the only way you can gain market share especially if your competitors already have a considerable popularity advantage on you. And this practice is not necessarily limited to goods but in services as well. An established phenomena called business process outsourcing has been one of the more prevalent trends that picked up at the turn of the millenium. Essentially, these products and services are white label versions of their more expensive and more recognized counterparts.
So, what is the secret behind white label trading and how does it offer advantage to the one doing the trading? First of all, we want to understand white label trading as a concept in itself. Taking a step back, white label trading is simply consuming products and services that are created, and sometimes maintained, by another company, then marketing and selling the resulting product as your own. This is basically manufacturing but to a much more complex degree. The businessmen in this situation gain advantage by reusing an already tried and tested platform and only adding the finishing touches all with a meager subscription price.
So, when is white label trading the better choice? To answer that question, you have to understand your business first and compare two distinct scenarios. In the first scenario, you are going to pay for the necessary services you need for your business and this includes the platform itself, the manpower behind the service, and the raw materials, investment or capital. In the second scenario, all the services in between will be done for you from an external entity but you have to pay a service fee. The answer is then obviously the scenario which saves you more money which means that it depends on just how big your business is. If you use the service often enough that the service fees you incur is comparable to the price of running it all on your own then the first scenario makes sense. But for smaller businesses wanting to have a jumpstart, the second scenario would fit you better.
There is nothing wrong at all in starting from white label. A lot of the more successful businesses nowadays started from white label and a lot of them are still using it. If you are unsure what choice to make, typically the right one would be to go white label.
White Label Trading Software Benefits
The main benefit you gain from White Label Services is that you get to focus on the job at hand without having to worry so much about the infrastructure within. Trading, in particular, can get pretty complex the moment you get away from the purely trading aspect of it. For instance, trading software nowadays are usually built upon a web of service applications interlinked together in a complex architecture. The applications can include service APIs to real time trading information, artificial intelligence and database access. And to make matters more complicated than it already is, a series of protocols intended to ensure the security of the communication lines would have to be considered as well. Finally, the underlying infrastructure would be setup and optimized in a way that would make most of the expensive hardware. All of these complexities can be easily avoided should you choose to do white label trading.
As a white label client, you are also ensured that the company offering the service to you will have the full brunt of their manpower and their combined experiences to back you up and ensure that you get the best service quality. White label services will offer services beyond usual trading like access to their APIs or AI driven decision support systems. These services they offer are a testament to their dedication to their craft, something that would have been the second priority should you decide to build it all up yourself.
Because the white label service focuses entirely on the platform, it is their responsibility to stay ahead in the competition in that regard. As an aspiring trader, you should already understand how important it is to stay ahead of the game when it comes to innovation.
Although, the final stages of scaling should be done with a move away from white label, anywhere between that and start up should be a breeze in white label. The reason why scaling is difficult is because there is essentially no middle ground when it comes to software service. The only real way to gain the upperhand when scaling is when you have a big enough customer base.
Choosing a White Label Trading Software Provider
If you have decided to go White Label for your trading needs then there is some information that you ought to know. First up, experience is valuable when it comes to providing a platform for services. Only through the rough patches of downtimes, lessons learned through the perils of the cloud can one truly master infrastructure management. You can be spared all of these dramas should you pick a provider that has a lot of experience.
Customizability is essential to trading as it allows you to experience the market in a way that is preferable to you. And this is not to say that you are able to change a few fonts or create dashboards. You should also be able to customize email alerts, access rights, and other administrative functions.
Finally, as with choosing any software provider, make sure that the partner you choose put security on top of their priority list. It only takes one hack to put your information out for ransom.
This is an article provided by our partners’ network. It does not reflect the views or opinions of our editorial team and management.