White label trading solutions are becoming more and more popular nowadays in the trading world. They’ve become the easiest way for companies to step foot in the trading market. Let’s look at what white label trading solutions are and how they work when it comes to software solutions.
White label products
The ‘white’ in the term white label means blank. See, when companies sell any of their products, they use a label to show which brand it is. So, if you buy a Nike t-shirt, it has a Nike label on it. However, often companies sell their own products to other companies, who then resell it under their own label. If you wanted to sell t-shirts but didn’t want to bother with setting up a factory, you can buy white label shirts from a manufacturer and place your own label on the product. They are called white label products because they are meant to be labeled by the reseller.
White label products are all around us. When you go to a major supermarket chain and find store brand items, they are white label items. The supermarket chain doesn’t produce these products – it just buys them in white label and puts their own store name on it. The advantage in this scenario for the brand is that it gets to sell a product and earn profit on it without needing to set up a manufacturing setup. The advantage for the seller is that they sell a large quantity of products at once, without needing to spend any money on marketing or advertising to sell the product.
White Label Trading Solutions
Now, think of it in terms of trading solutions. Trading solutions are notoriously difficult to develop. They need ironclad security features, they need to be compliant with hundreds of different trading and financial regulations, and they need to work properly with all the existing trading exchanges. The process is so complicated that a normal software house wouldn’t even want to dabble in the creation of one, and development studios that do develop trading solutions are considered financial development experts.
Now, if you are starting your own trading company and offering trading services, you will need to provide a trading solution to your customers. Everyone trades digitally these days. The problem is that getting a trading solution made for your company is such an expensive endeavor that the process was restricted to major companies alone. A small trading company cannot afford to have their own trading platform developed and maintained.
So what they do instead is they get a white label trading solution, customize it according to their own needs and their target market, and provide it to customers. You simply pay the original developer for each time the solution is deployed. No major development costs are included; you just need to spend a bit of money to get the solution tweaked according to your needs.
The Advantages of White Label Trading Solutions
The white label trading solution will be robustly developed, kept updated by the original developers, and will cost a fraction compared to what you would have had to pay to get your own solution developed. So you spend less money but get a much better solution that you could have hoped for. That is why you should choose to go with white label trading solution.