In the online forex & CFD trading industry, three prominent partnership programs emerge: Introducing Broker (IB), affiliate, and the white label. While they may initially seem similar, each has distinct functions that set them apart.
Common Similarities
Both forex affiliates and introducing brokers offer clients specific market-related services and products. Introducing brokers, in essence, act as agents for brokerage firms, chosen based on criteria aligned with the company’s objectives. Forex introducing brokers often start as affiliates and earn the IB title after introducing at least 5 active clients.
Major Differences Between White Label, Affiliate, and IB: Diverse Payment Systems
Affiliates primarily rely on commissions from the forex broker for each referred client who deposits and trades. However, clients who register without trading do not count towards active clientele and yield no earnings for the affiliate. The commissions may also be affected by the broker’s eligibility criteria for clients.
Forex introducing brokers use a similar payment system but calculate earnings differently. Their commissions comprise both the spreads paid by the broker and a specific sum from the client. As a result, the percentage for each component may vary based on the broker’s conditions.
White Labels Are Unique
Forex white Labels differ from introducing brokers and regular affiliates by maintaining anonymity about their affiliations. They function as independent businesses aiming to provide brokerage services under their own brand. The contract between the broker and the white label affiliate offers greater customization options tailored to their business.
White label affiliation allows affiliates to create their own brand and sell goods or services from their website, leveraging existing traffic. The flexibility of white label programs empowers newly established companies to organize services and manage clients according to their vision.
Forex Consulting Services – Guidance in Launching a Forex Broker
Ultimately, the choice of partnership depends on individual goals and objectives. Each type – forex introducing brokers, affiliates, and white labels – comes with unique characteristics, advantages, and disadvantages.
Whether you are looking to become an affiliate or launch your own brokerage, our team of experts are here to assist you. Contact us today!
