Heather McLean
Heather McLean

White Label Partnerships: the key to speedier FX growth strategies

Interest in White Label partnerships is growing amongst brokers and financial institutions (FI’s) looking to quickly break into the FX industry, and in particular for those targeting the retail FX sector. When time, cost and opportunity to trade efficiently and fairly are weighed up, White Labelling seems to come out on top. Heather McLean explores why it is increasingly the correct choice over other options.

First Published: e-Forex Magazine 41 / Retail e-FX Provider / October, 2010

In order for FI’s to be successful in the FX industry, they need to have trading volume, says Bart Res, managing director at Nexaweb Europe. He remarks that without volume going through the books, banks will have a far less interesting trading proposition and will compete with specialised brokers and traders without competitive advantage. Since the late 1990’s specialists and analysts have been saying that ultimately there will be seven to 10 banks globally that successfully operate in FX trading, dividing 80% or more of the trading among them, adds Res. “The reason for this consolidation of business is that the market is so transparent and liquid, that trading in most currency pairs or yield curves is virtually done at no bid-ask spread.   “Tapping into retail and SME business is tapping into where the volume growth is,” continues Res. “Research shows that retail and small to medium sized businesses are expected to be the fastest growing number of users of...continued

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