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 hits two-day highs near 1.1820
EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.
GBP/USD reclaims 1.3600 and above
GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.
USD/JPY drops back below 157.00, as focus shifts to Japan snap election
USD/JPY is back in the red below 157.00 in the Asian session on Friday. The Japanese Yen recovers ground against the US Dollar amid some profit-taking ahead of Japan's snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday.
Editors’ Picks
EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates Premium
The EUR/USD pair lost additional ground in the first week of February, settling at around 1.1820. The reversal lost momentum after the pair peaked at 1.2082 in January, its highest since mid-2021.
Gold: Volatility persists in commodity space Premium
After losing more than 8% to end the previous week, Gold (XAU/USD) remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000.
GBP/USD: Pound Sterling tests key support ahead of a big week Premium
The Pound Sterling (GBP) changed course against the US Dollar (USD), with GBP/USD giving up nearly 200 pips in a dramatic correction.
Bitcoin: The worst may be behind us
Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.
Three scenarios for Japanese Yen ahead of snap election Premium
The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.
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