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 keeps range near 1.1750 ahead of German/ EU PMI data
EUR/USD maintains its range trade at around 1.1750 in European trading on Tuesday. The pair's volatility remains low, with investors awaiting a bunch of top-tier economic data releases from Germany, Eurozone and the US. The immediate focus is on the German and Eurozone preliminary PMI data.
When is the UK labor market report and how could it affect GBP/USD?
The UK Office for National Statistics will publish its labor market report at 07.00 GMT. GBP/USD trades in negative territory on the day in the lead up to the UK employment data. The pair loses ground as traders turn cautious ahead of the key US economic data, including Nonfarm Payrolls, Retail Sales, and Purchasing Managers Index.
USD/JPY stays in the red below 155.00 amid BoJ rate hike bets, US data awaited
USD/JPY holds moderate losses below 155.00 in the Asian session on Tuesday. The Japanese Yen gains ground on expectations that the Bank of Japan will raise interest rates at the upcoming policy meeting on Friday. Traders will closely monitor key US data, including Nonfarm Payrolls, Retail Sales, and Purchasing Managers Index, which are due later in the day.
Editors’ Picks
When is the UK labor market report and how could it affect GBP/USD?
The UK Office for National Statistics will publish its labor market report at 07.00 GMT. GBP/USD trades in negative territory on the day in the lead up to the UK employment data. The pair loses ground as traders turn cautious ahead of the key US economic data, including Nonfarm Payrolls, Retail Sales, and Purchasing Managers Index.
EUR/USD keeps range near 1.1750 ahead of German/ EU PMI data
EUR/USD maintains its range trade at around 1.1750 in European trading on Tuesday. The pair's volatility remains low, with investors awaiting a bunch of top-tier economic data releases from Germany, Eurozone and the US. The immediate focus is on the German and Eurozone preliminary PMI data.
Gold bulls move to the sidelines ahead of delayed US NFP report
Gold attracts some sellers during the Asian session on Tuesday and extends the overnight pullback from the $4,350 region, or the vicinity of the highest level since October 21, touched last week. The intraday downtick comes amid optimism over the Russia-Ukraine peace deal, which is seen undermining demand for the traditional safe-haven commodity.
Sui Price Forecast: Sui slips below $1.50 as network demand and risk appetite wane
Sui remains under intense bearish pressure, extending losses by 1% at press time on Tuesday for the third straight day.
NFP preview: Complex data release will determine if Fed was right to cut rates
The long wait is over, and the Bureau of Labor Statistics in the US will release nonfarm payrolls reports for both November and October at 1330 GMT on Tuesday. The overall NFP figure for October is expected to be -10k, however, it is expected to be influenced by a massive 130k drop in federal department workers.
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