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Introducing Broker (IB) and White Label (WL) are two common terms used in the Forex trading industry.
An Introducing Broker is an individual or organization that introduces clients to a broker. The IB acts as a middleman between the client and the broker and earns a commission for each trade executed by the client. IBs can be individuals, companies, or even other brokers.
White Label, on the other hand, is a type of partnership where a company (the white label partner) uses the technology and services of another company (the broker) to provide Forex trading services under their own brand name. The white label partner typically markets the services and handles customer support while the broker provides the trading platform, liquidity, and other backend services. In this partnership, the white label partner shares revenue with the broker based on the volume of trades executed by their clients.
IBs introduce clients to a broker and earn a commission, while white label partners use the technology and services of a broker to offer Forex trading services under their own brand name and share revenue with the broker. The main difference between Introducing Broker (IB) and White Label (WL) is in the nature of their partnership with the broker.
An Introducing Broker (IB) is essentially a person or an organization that introduces clients to a broker. The IB typically has a network of potential clients and markets the broker's services to them. When a client signs up and starts trading with the broker, the IB earns a commission on each trade executed by the client. The IB does not provide any technology or services to the client and does not have control over the trading platform or the client's trading activity. The IB's primary role is to find and refer potential clients to the broker and provide customer support as needed.
In contrast, a White Label (WL) partnership is a more formal and long-term arrangement between a broker and a company. In a WL partnership, a company uses the technology and services of a broker to offer Forex trading services under their own brand name. The White Label partner typically has its own marketing channels and customer base and markets the broker's services under its own brand. The White Label partner handles customer support and sets its own pricing and fees, while the broker provides the trading platform, liquidity, and other backend services. The broker earns a share of the revenue generated by the White Label partner, which can be a fixed fee or a percentage of the trading volume.
In summary, the main difference between IB and WL is that an IB is a sales representative who introduces clients to a broker and earns a commission on each trade executed by the client, while a WL partner uses the technology and services of a broker to offer Forex trading services under their own brand name and shares revenue with the broker. Both IB and WL partnerships are common in the Forex trading industry and can be beneficial for all parties involved.
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