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Overview of Brokers and White Label Programs – Understanding the Difference

by Alex James
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The Broker Affiliate Program is, simply put, a virtual space on the web that allows brokers to collaborate with publishers, web influencers and industry giants towards a common goal. Introducing Broker Partners receive a commission for this partnership.

By contrast, brokers benefit from referrals as they attract more customers and increase brand awareness. Such agreements generally require an agreement between the parties under local law.

Affiliate programs exist in various industries, but the financial sector affiliate program is arguably the most lucrative for employees.

Referrers and white label companies are basically very similar. The broker’s goal is the same for both models: to attract, persuade and retain his end-users trading on the leading broker’s platform.

In both situations, the higher the trading volume, the higher the broker’s earnings and, as a result, the more money he makes. Attracting and retaining traders in the system therefore becomes the most important element of the business model.

The main difference between the two models is the degree of autonomy and the range of functions. A white label broker is a more full-fledged entity with greater independence and client control than an introducing broker, which acts as an intermediary between incumbent brokers and their traders.

Broker and White Label Program Implementation Compensation Scheme
General CPA or Cost Per Acquisition
Not all participants in the CPA model pay commissions to their partners, including Forex and his CFD Broker. Affiliates only get paid when their customers are “activated”. This is a common internet marketing tactic. To be eligible for commission, you must click on the affiliate’s link on her website or the broker’s banner. Visit the broker’s website, open a real account, make the required deposit and place your first trade.

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Understanding the value of your cibil reputation and how to increase it It looks like you have to pay. It’s important to note that CPA revenues are attractive as fees can reach $250 per customer in this model.

CPL Model or Cost Per Lead
Cost Per Lead or His CPL is a payment method based on receiving commissions from referred customers. In this scenario, affiliates are paid when prospects they are trying to acquire fill out certain forms. Such persons are motivated to provide their contact information if offered a free account with bonuses and no deposit required. The brokerage firm will be able to access the personal information of potential traders. , affiliates earn commissions, but less than the CPA model.

Advanced Revenue Sharing Model
Another type of commission agreement is a revenue share or revenue share.

CPL Model or Cost Per Lead
Cost Per Lead or CPL is a payment method based on receiving commissions from referred customers. In this scenario, affiliates are paid when prospects they are trying to acquire fill out certain forms. Such persons are motivated to provide their contact information if offered a free account with bonuses and no deposit required.The brokerage firm will be able to access potential traders’ private information. , affiliates earn commissions, but less than the CPA model.

Advanced Revenue Share Model
Another type of commission agreement is a revenue share or revenue share. Customers referred by affiliates must be active traders as affiliates receive a portion of the commission for successful trading. Trading fees are the source of revenue for the Forex and CFD markets, so brokerage firms strive to retain customers as long as possible (usually converted into spreads).

However, its autonomy has some limitations. Some important features such as the symbols they offer for trading and their start and end times are out of your control as you rent the trading platform along with the server and only feed from your primary broker.

Also, white label brokers do not execute trade orders. Instead, the primary broker does this. However, other white label brands operate similarly to other brokers in terms of trading terms, spreads, commissions, and organizational structure. Benefits include immediate regulation under our supervision, back office support, resources, tools and logistical support.

In addition, all reporting and other administrative and regulatory processes are handled by the Primary Broker.

White label agreements also offer more flexible revenue and compensation models, depending on the specifics of the partnership agreement. Without the serious difficulties that come with starting your own brokerage firm.

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