White Label or MT4 Server License? – The Pros & Cons
Whether or not to purchase an entire MT4 software server is a challenging decision for a broker. Due to the financial commitment involved in buying the server outjustify, pros and cons must be weighed carefully. We offer 3 consideration points for brokers struggling to decide which is the best fit for their business.
Although a white label comes at a lower cost, there is a trade-off in terms of flexibility. Each provider is slightly different, but as a general rule the number of price feeds, accounts, products, groups, and markups will be limited. This is an important consideration. If your broker wishes to offer a very customized and unique product offering, a white label might not be the best fit. On the other hand, if your budget is limited and your brokerage is willing to compromise in some areas, then a white label makes more sense.
Rent vs. Own
To help understand this point, consider opening a restaurant. It’s less costly to rent out the building but in exchange the physical property as well as equipment do not count toward company assets. The same holds true with MT4. A white label is more cost effective and allows your brokerage to start on a smaller budget but in exchange the software will always be in the name of the provider, not your brokerage. This makes a potential acquisition less attractive since it is never easy to move clients to a different system and the lack of software ownership will command a smaller price tag.
What type of business would you like to establish? Will your brokerage focus solely on a single region? Will it be a boutique shop that concentrates on a handful of traders? Or is your intent to be a global name with multiple languages and product offerings? The answers to these questions will also help with the decision. The larger the goal and reach of your brokerage, the more it makes sense to begin with the full server license as it will be far easier to scale.
Atomiq Consulting specializes in MT4 server management, our 24 MT4 Support Desk is an ideal fit for brokers looking to either partially or fully outsource their MT4 IT needs. If you are seriously considering purchasing a server, we are happy to have a more detailed discussion regarding the pros and cons which we briefly outlined in this article.
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