Importance Of White Label Exchange Software in Fintech

Pavel Satsuk -

Introduction

White label(WL) exchange software, one of the most recent innovations in the financial technology sector,  has been a quite trendy topic amongst stakeholders. First, what exactly is white label exchange software, and why are fintech white label software becoming very popular? A white label exchange software is a pre-built turnkey solution providing the core infrastructure needed to build a customized exchange trading platform. This software has empowered several entrepreneurs to launch their customized exchange trading platforms without building from scratch.

Another frequently asked question by many individuals is “How exactly does it work?”. This article will try to simplify the answer to this question as much as possible.

Think of a white label exchange software as a template, or a blank canvas. Basically, a pre-built software that serves as a foundation for your project. With this software, many entrepreneurs can build trading exchange platforms without the rigorous development process or the exorbitant fees. They can easily build on an already existing white label exchange, customize it to suit the business’ needs, and include all necessary functionalities.

Key Features and Functionalities

For businesses interested in white label exchange software, there are certain features and functionalities that the software must possess to be highly demanded. Some of them are:

  • Administrative Panels: Many standard WL software have administrative panels. These panels are used to manage the user’s account, fees, and other important settings easily. They can also be used to monitor the progress of the software.
  • User-friendly Interface: An interactive and seamless user interface is one of the key features to look out for in choosing a fitting WL software.
  • Security Measures: WL software should have incorporated robust security protocols including advanced features like DDoS protection, multi-signature technology, and cold storage wallets among others. These would help in safeguarding user funds and preventing unauthorized access.
  • Liquidity Aggregation: This feature ensures access to multiple liquidity providers. This will ensure optimal market depth and competitive pricing for the users.
  • Order Matching Engine: This assists with seamless and transparent trading by efficiently matching buy and sell orders.
  • Compliance Tools: A good WL software should be equipped with features to comply with KYC/AML regulations as it is important for business operations stability.

Cost-efficiency and Time-to-market

Building an exchange trading platform is a very costly venture, both monetarily and in terms of duration. It is resource-intensive, which might be bad for businesses that lack the needed resources.

With WL exchange software, businesses have a faster and more affordable alternative to developing from scratch. With minimal development time, the platform can be quickly launched into the market to capitalize on its early-entry advantage. This will give businesses the competitive advantage to capture or dominate the market shares before other competitors with longer development times can enter the market.

Customization and Branding

Customization is one of the key marketing points of WL software. These software are flexible and allow for easy customization to suit the brand image and identity of the business. Businesses can even incorporate custom features into their platform. This helps to tailor the platform to achieve the needs and vision of the business.

Security Measures

For a trading platform, security is very important. WL software platform providers usually set up robust security measures to ensure the safety of users’ funds and protect the exchange against security attacks by malicious entities. Some industry-standard security measures include DDOS protection, multi-signature technology, and cold storage wallets, among others.

It is important to know that these security measures are not only for show, they are fully functional as they were set up to ensure the safety of the software. Hence, buyers should be rest assured that WL software is very safe to use.

Integration With Third-party Services

One unique feature of WL software is the ability to integrate with several third-party services. This strengthens the flexibility feature claim of WL software. Buyers can enjoy a seamless integration of WL software and other third-party apps with an amazing user experience. Buyers who make use of this feature and leverage the integrations can offer their users a robust trading platform for attending to their many needs.

Common third-party integrations include: payment gateways, market data providers, KYC/AML verification tools, analytics platforms, and so on.

Real-world Use Cases: FXOpen

Let’s take a look at a prime example of a successful white label software. FXOpen is one of the world’s leading and fastest-growing forex brokers. Trusted by over a million traders in the world, it is not far-fetched to say that users hold FXOpen to a very high standard.

A detailed look at this platform suggests that it is a seamless and secure platform for trading various cryptocurrencies. The platform is well-equipped to cater to the various needs of its diverse users. The platform boasts of offering its customers “attractive trading conditions, fast order execution and the industry's most advanced and innovative technological solutions”.

FXOpen, through the use of SoftFX WL software, went from being a local broker founded by a group of friends in 2005 into a global band. The company is now a highly established ECN broker offering ECN, STP, Micro and digital assets trading accounts (depending on the jurisdiction), with a network of worldwide offices with brokerages across London, Cyprus, and Australia.

The solution provided to FXOpen by SoftFX helped in the following ways:

  • FXOpen manages operations with 624 trading instruments and over 600 stock CFDs using the software solution.
  • Using the SoftFX liquidity aggregation service, FXOpen can provide real-time quotes from the largest liquidity providers in the industry.
  • FXOpen is also able to offer tighter spreads and fast execution using SoftFX price aggregation technology.
  • FXOpen clients have the opportunity to perform their trading operations through the use of either MT4, MT5, or Ticktrader since the liquidity aggregator and trader’s room are seamlessly integrated with platforms from Metaquotes
  • FXOpen offers dozens of bank wire transfers, credit and debit cards, and electronic payment systems connections around the world using TickTrader Trader’s Room.The TickTrader Trader's Room component is also used for services such as providing reports, setting security passwords, pin codes, etc; verifying and processing customer requests and wallet operations; and processing any related transactions (e.g. operations with currencies).

Conclusion

The advent of white label solutions has completely revolutionized the financial technology (fintech) world. With WL solution programs, brokerage businesses of all sizes (particularly small brokers) can now easily launch their businesses at a better cost and in a shorter period. Its wide range of features is encouraging a new generation of trading platforms that are standing out in the fintech space.

With White label solutions, the possibilities are endless. As the digital asset market continues to grow, this solution will be a forerunner in shaping the future of the industry.

The Forex Broker Turnkey solution includes all the key components required for effective risk management in Forex brokerage firms, including a smart liquidity aggregator.

Frequently Asked Questions

Q1: What is a white label forex trading solution?

A white label forex trading solution is a pre-built forex trading platform that businesses can customize with branding and unique features. This pre-built platform helps save businesses time, finances, and effort that would have gone into building a forex trading platform from scratch. It’s literally a fully equipped and ready-to-launch Forex platform but without the rigorous development process.

Q2: Why do brokers choose white label programs?

Many brokers prefer to purchase white label forex trading solutions simply because of the ease and convenience. Not only does it save the company from a rigorous and capital-intensive development process, but it also comes with a lot of in-built features and infrastructures. This ensures that brokers can launch their trading platforms faster than the anticipated time. These white-label programs also encourage scalability as they help brokers to easily adapt and expand their platform as their business grows. It also helps brokers to focus on other operational aspects of the business beyond the platform. Brokers can now dedicate a significant portion of their resources to marketing, building a customer base and customer loyalty.

Q3: What criteria should brokers consider when choosing a White Label solution?

Many experienced brokers consider a lot of factors before choosing their preferred white label program. These factors are usually influenced by their business needs, priorities, and resources. Some of the most popular features to look out for are:

  • Cost and Pricing Structure: Cost and pricing are some of the most important factors that brokers consider when choosing WL programs. The WL program should be reasonably priced and fit into the business’ budget.
  • Compliance and Regulation: Brokers ensure that the WL program solution complies with all relevant financial regulations as well as KYC/AML requirements. This helps to reduce the regulatory burden the management will undertake.
  • Advanced Features: Brokers are usually drawn to the technological features embedded in the platform. Programs that have a lot of advanced features are usually the most favoured by Brokers.
  • Support Service: The support service offered by the white label solution company is also an important factor considered by brokers. The provider has to offer comprehensive support, training, and ongoing maintenance.
  • Liquidity and Market Access: The white label provider also has to offer access to deep liquidity pools and a diverse market for the platform.