Binary Options White Labels – What, Who, How?
I’ve been thinking the other day: why do we see almost every week a new binary options broker? I guess the answer is pretty obvious: it’s profitable. Otherwise they wouldn’t bother. And the fact that people are so willing to throw money at the first broker who says “Our team of experts will make you rich…” helps too. Furthermore, by using a white label, they don’t even need very deep pockets to launch a new brokerage. But what are white labels and how do they work? Well, this article is gonna shed some light on those questions.
What are Binary Options White Labels?
Simply put, a white label product is a blank canvas which will be later personalized and customized by the new broker (or sometimes by the provider of the platform). The actual product is built by one company (Trading platform providers such as SpotOption, TechFinancials. MarketsPulse, etc) and re branded by another company (the new broker) to make it look like their own. In common terms, the company which buys the white label product (in our case a binary options platform) is known as a white label. Of course, there is a monetary aspect of the deal: the new broker pays a certain amount to the producer of the platform. Nothing is free after all, but the costs are not through the roof: with $20K to $40K (depending on the level of customization and available features), a white label can be purchased and Presto! a new broker is born. The provider helps with marketing, IT infrastructure, provides technical support, back office tools… almost anything needed to make the new broker fully operational. Some white label providers choose to charge a commission for all their work, in other words, they are paid directly from the revenues of the new broker (they deduct a certain percentage). Others go for a more straightforward approach and charge a one-time fee. That’s how white label brokers are created and that’s why we have so many, but sometimes it’s hard to differentiate between them because they all look so similar and often their name is the only thing that makes the difference.
Like I said above, the majority of the work is done by the platform provider, but the new broker, the white label has to put in some work too, personalizing the content so they don’t all look like mirror images of one another. Unfortunately here is where most of them become lazy… I mean, they have been given a “template”, but they have to put in their own touch if they want to stand out a bit. Well, this is too hard for most of them and that’s why we end up seeing the same slogan over and over again: “We focus on who really matters. You.” or “We are ready. Are you?”. Sounds familiar? Yes, because they cannot bother to change it… too much work. And there’s another thing: did you notice how almost all brokers are “the most professional”, “the most objective”, “the most innovative” and “the leader of the industry”? Oh, they hold themselves in such high regard, but in fact all they think about is how to get you to invest. “Innovative”… please, you can’t even come up with a slogan and most of the time even your name sucks big time… this reminds me of another article – SpotOption brands. Read it here if you want to hear some great broker names, but don’t take it too seriously (:. In fact, I am sure you won’t take too seriously a broker named “Beaned” or “Gold Finger”…
Wrapping it up – Choose Wisely who you are doing Business with.
White labels are commonly used in all businesses, not only in binary options, but lately we see another trend growing: there seems to be an increase in the number of platform providers and all of them are willing to offer their platform as a white label. So what does this mean for the industry? Maybe we will see a lot more brokers appearing over night (as if we didn’t have enough already), or maybe we will see the platform providers opening their own brokerage (probably they will provide a higher quality service for us traders). Either way, there’s never a shortage of brokers – white labels or not – but there is a shortage of reliable brokers and this is where we can lend a hand: after careful consideration, we’ve selected a handful of brokers who provide an elite service so feel free to check them out here.