23/01/2016

What is an MT4 Grey Label? Does It Make Sense To Get An MT4 Grey Label?

The term “grey label” is a relatively new concept in the online forex industry, something we discuss at length in today’s post.

In the past months especially, we’ve received several inquiries concerning a new version / flavor of MT4 white labels, most commonly referred to as grey labels. In our view, the main reason we’ve seen this uptick in requests for “grey labels” is that they are an even more cost effective way to build a forex brokerage. Naturally, the opportunity to lease white label software at an even lower price point has caught the attention of investors and entrepreneurs alike, prompting many questions along the way.

Common Questions About MT4 Grey Labels

Due to the recent wave of inquiries surrounding grey labels, both investors and entrepreneurs who are considering starting their own forex brokerage often approach us with a variety of questions:

“What is an MT4 grey label?”

“How much does an MT4 grey label cost?”

“Which technology and software providers offer MT4 gray labels?”

“Is it possible to obtain an MT5 grey label?”

The Definition of a Grey Label – What is an MT4 Grey Label?

A grey label is simply a non-branded version of the MT4 or MT5 platform. Unlike an MT4 / MT5 white label, which completely reflects the branding of the brokerage, a gray label comes with no branding options at all. To be clear, branding refers to the logo, company name, address and contact details of a forex brokerage, none of which are offered with a gray label. In fact, a gray label is nothing more than an MT4 manager account belonging to an existing white label provider or forex broker.

MetaQuotes does not look favorably upon gray labels because they are being promoted as a way to avoid the costs of starting a white label. This fact alone should be a major red flag for anyone seriously considering obtaining an MT4 or MT5 gray label. In short, signing up for a gray label comes with a high degree of risk as MetaQuotes could potentially shut down the service at any time.

Our Opinion of MT4 Grey Labels

With decades of experience in the online forex trading industry, we do not recommend grey labels. Not only does your new FX broker face the constant risk of the service interruptions we’ve previously alluded to, we can point out two additional challenges you’ll face when it comes to MT4 grey labels.

First, technology costs are just a portion of what’s required to start your own forex brokerage. If the standard white label fees are too costly, how will it be possible to afford the many other costs associated with starting a forex broker?

Secondly, the online foreign exchange (forex) market is an incredibly competitive industry, making it challenging to promote a business without a software brand. Not only will traders be suspicious of your grey label offering, they may end up opening an account directly with the provider hosting your grey label, thereby skipping over your brokerage altogether.

Are There Any Alternatives to MT4 / MT5 Grey Labels?

The short answer is yes. If the upfront cost of an MT4/MT5 white label is simply too expensive for your new FX broker, then we have a couple of alternative options to consider.

The first idea would be to establish an IB (Introducing Broker) relationship with one of our partner firms. Keep in mind that many established brokers started off as IBs, built a book of business, and then successfully made the transition to a full fledged brokerage. The advantage to this approach is that investment capital can be saved yet the broker still has the opportunity to generate a decent stream of revenue.

Secondly, we are also able to provide your new broker with an alternative trading platform to MT4 or MT5. The trading platform that we’d like to introduce to you won’t have the same upfront and monthly costs associated with an MT4 white label, which can be helpful to brokers working on a limited budget. If your new forex broker is looking for a more cost effective, yet competitive software solution, please contact us to learn more about our fully customizable forex trading platform.

Atomiq Consulting – Your Partner for MT4 & MT5 White Label Solutions

Founded in 2014, Atomiq Consulting is an industry leader for all products and services related to online foreign exchange trading. If your firm is looking to establish a white label or acquire an MT4 / MT5 server license, we are the ideal partner to assist you further.

To learn more about our complete suite of software and services, don’t hesitate to contact us today!