There are many obstacles involved when trying to obtain a forex grey label, which is why we’ve developed an alternative solution.
In the past months, we’ve had many discussions with clients about “grey” or “soft” labels. Since this seems to be the latest buzzword hitting the forex industry, we’d like to provide some background about grey labels and also offer our own insight.
To start, it’s important to define the term grey label. Given the massive amount of jargon in the forex industry, it’s especially helpful for those new to the world of forex trading to have a clear definition of what a grey label is.
What is an MT4 / MT5 Grey Label?
A grey label is a rather appropriate name as it toes the line between an IB (Introducing Broker) relationship and an MT4/MT5 white label. Essentially, a forex broker offering a grey label allows the potential partner to promote their business using the direct name of the broker, instead of a branded, white label name. Unlike an IB relationship, a gray label partner has greater control over customization and the client relationship, hence the appeal.
Why We Don’t Recommend Obtaining an MT4/MT5 Gray Label
The first reason you’ll have trouble starting a grey label is that many brokers are not willing to risk their business name and reputation so easily. Although an agreement between both parties can be signed, it’s rather difficult to enforce until the damage has already been done. Remember, that a forex broker’s reputation can take years to build, but only weeks to destroy. For this reason, it’s difficult to find a broker who is willing to take on such risk.
Secondly, in the past 15 years, technology has been the major market disruptor that allowed the retail FX industry to take off. This same technology that any white label operator now has at their disposal, would have cost several million dollars to develop in the mid to late 90s. Today, a white label can be started at a mere fraction of the cost. To expect to access such amazing technology yet pay next to nothing for it, is simply unreasonable.
Finally, there is far involved when starting a forex broker than just the technology. In addition to software, new forex brokers must consider setting aside a marketing budget, hiring a sales team, applying for a forex broker license, and other considerations. For this reason, if capital limitations are what is behind the need to obtain a grey label, we’d recommend remaining as an Introducing Broker / Referal Agent before starting your own MT4 or MT5 white label.
We Have an Alternative to MT4/MT5 Grey Labels – Contact Us Today to Learn More!
For the reasons outlined above, attempting to obtain a forex gray label will be more effort than its worth, with plenty of obstacles along the way. We’ve noticed, however, that there is obvious demand for this product which is why we have several alternatives to MT4 and MT5 grey labels.
If you’d like to learn more about our alternative software solution, or would simply like to obtain a traditional MT4 or MT5 white label, don’t hesitate to contact us today in order to learn more!
