Heather McLean
Heather McLean

White Label partnerships: Taking the quick route to establishing an online FX business

Whether dealing with retail individuals or institutional firms, building an FX system in-house can involve prohibitive costs and long time delays. The alternative is a white labelled solution from a third party provider. Heather McLean, examines how white label solutions can expedite entry into the burgeoning and lucrative FX market.

The retail FX industry has grown nearly tenfold in the past decade, and in 2010 was estimated to be at $315 billion in average daily turnover. In addition, annual revenue of the retail FX brokerage industry is estimated to be at nearly $10 billion, according to Aite Group. These provide compelling reasons for financial services and brokerage firms to enter this fast growing and lucrative market. Deciding factors Tom Levine, senior vice president for institutional sales at GAIN Capital, says “When considering any kind of strategic partnership, and in particular an FX white label partner, a firm needs to consider the fundamentals associated with both client facing and back office features”. He notes: “Institutions should ask themselves questions like: Does this firm have a good reputation in the market? Is the firm going to provide a reliable and scalable service? How deep is this company’s expertise and how will they be able to help me post product launch?” Luis Sanchez...continued

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