There are hundreds of different forex brokers on the Internet; way too many to keep track of thoroughly. And each one offers something different and targets a different kind of customer.
This occurs when a larger, more established broker allows other smaller providers to use the larger broker's products. This allows smaller forex providers to build up their own business model without having to develop their own proprietary trading products.
Meanwhile, the established broker gets to keep a big cut of the commissions that the white label provider brings in. It’s a win-win business model as both parties benefit from the collaboration.
However, just because a forex service is white label, and ultimately providing the same service as another, does not mean you should trust that broker complicitly. White label forex providers can still change their spreads and charges and this will make some more attractive than others.
But why are there so many?
Well, one reason why there are so many different forex providers is due to white label licensing.This occurs when a larger, more established broker allows other smaller providers to use the larger broker's products. This allows smaller forex providers to build up their own business model without having to develop their own proprietary trading products.
Meanwhile, the established broker gets to keep a big cut of the commissions that the white label provider brings in. It’s a win-win business model as both parties benefit from the collaboration.
However, just because a forex service is white label, and ultimately providing the same service as another, does not mean you should trust that broker complicitly. White label forex providers can still change their spreads and charges and this will make some more attractive than others.
Reputation
The first thing to look for when joining a forex provider is the reputation of the company. And if it’s a white label product then you’ll want to look at both the white label provider and the primary broker. Does the provider have all the necessary legal accreditation and is it well thought of within the industry? Forex trading Internet forums can be invaluable in finding out from other traders which brokers are the best to use.Longevity
While it’s not set in stone, a useful guide to judging a forex provider is how long the broker has been in action. Forex brokers that charge high commissions and generally rip off traders rarely last long in this industry. In fact, since a forex broker can be set up as a white label product for a very small cost some brokers may not even intend to last all that long. Legal changes have helped stop this kind of thing but generally, longevity is a good thing to look out for in the forex market.
Editors’ Picks
EUR/USD clings to small gains near 1.1750
Following a short-lasting correction in the early European session, EUR/USD regains its traction and clings to moderate gains at around 1.1750 on Monday. Nevertheless, the pair's volatility remains low, with investors awaiting this weeks key data releases from the US and the ECB policy announcements.
GBP/USD edges higher toward 1.3400 ahead of US data and BoE
GBP/USD reverses its direction and advances toward 1.3400 following a drop to the 1.3350 area earlier in the day. The US Dollar struggles to gather recovery momentum as markets await Tuesday's Nonfarm Payrolls data, while the Pound Sterling holds steady ahead of the BoE policy announcements later in the week.
Japanese Yen adds to strong gains and drags USD/JPY to 155.00 amid hawkish BoJ bets
The Japanese Yen extends its steady intraday ascent through the Asian session on Monday, dragging the USD/JPY pair to the 155.00 psychological mark in the last hour. Against the backdrop of the recent shift in rhetoric from Bank of Japan Governor Kazuo Ueda, an improvement in business confidence reaffirms market bets for an imminent rate hike this week.
Editors’ Picks
EUR/USD clings to small gains near 1.1750
Following a short-lasting correction in the early European session, EUR/USD regains its traction and clings to moderate gains at around 1.1750 on Monday. Nevertheless, the pair's volatility remains low, with investors awaiting this weeks key data releases from the US and the ECB policy announcements.
GBP/USD edges higher toward 1.3400 ahead of US data and BoE
GBP/USD reverses its direction and advances toward 1.3400 following a drop to the 1.3350 area earlier in the day. The US Dollar struggles to gather recovery momentum as markets await Tuesday's Nonfarm Payrolls data, while the Pound Sterling holds steady ahead of the BoE policy announcements later in the week.
Gold stuck around $4,300 as markets turn cautious
Gold loses its bullish momentum and retreats below $4,350 after testing this level earlier on Monday. XAU/USD, however, stays in positive territory as the US Dollar remains on the back foot on growing expectations for a dovish Fed policy outlook next year.
Solana consolidates as spot ETF inflows near $1 billion signal institutional dip-buying
Solana price hovers above $131 at the time of writing on Monday, nearing the upper boundary of a falling wedge pattern, awaiting a decisive breakout. On the institutional side, demand for spot Solana Exchange-Traded Funds remained firm, pushing total assets under management to nearly $1 billion since launch.
Big week ends with big doubts
The S&P 500 continued to push higher yesterday as the US 2-year yield wavered around the 3.50% mark following a Federal Reserve (Fed) rate cut earlier this week that was ultimately perceived as not that hawkish after all. The cut is especially boosting the non-tech pockets of the market.
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