White label broker
Family VIII · Regulation
Not to be confused with forex broker, broker, asic regulated broker.
White label broker is a business arrangement in which one firm (the white label) markets trading services under its own name while a licensed parent or technology provider supplies the platform, liquidity and regulatory cover. The white label typically pays setup and ongoing fees, and may share revenue with the provider. The licence remains with the provider, so the white label's regulatory status is derived rather than direct.
How a white label arrangement works
A white label broker does not hold its own licence in most cases. Instead, it operates under the licence of a forex broker or financial firm that has the necessary permissions. The provider handles order routing, platform hosting, and often back-office functions. The white label focuses on branding, client acquisition and customer support.
Revenue is typically split between the white label and the provider, often as a percentage of spreads or commissions. The white label may also pay a monthly fee for platform access and compliance oversight.
Regulatory and risk implications
Because the licence belongs to the provider, the white label's clients are usually treated as clients of the provider for regulatory purposes. This means dispute resolution and compensation schemes, where they exist, are tied to the provider's jurisdiction. The white label itself may not appear on any regulator's register.
Rules on white label arrangements vary by country and regulator. Some jurisdictions require the white label to be listed as an authorised representative; others prohibit the practice or impose strict disclosure requirements. Traders should verify which legal entity holds their funds and which regulator supervises it.
Worked example: revenue split
Often confused with
- forex broker
- A forex broker is a licensed firm that executes currency trades for clients, whereas a white label broker operates under another firm's licence and infrastructure; the visible sign is whether the firm appears on a regulator's register under its own name.
- broker
- A broker is any intermediary that matches buyers and sellers for a commission, while a white label broker is specifically a branded front-end for another broker's licensed operations; the visible sign is the presence of a separate provider named in the client agreement.
- asic regulated broker
- An ASIC-regulated broker holds its own Australian financial services licence, whereas a white label broker typically does not hold a licence and relies on a provider's; the visible sign is the licence number and entity name on the regulator's public register.
See also
- anti money laundering check
- asic regulated broker
- broker insolvency
- broker license
- cftc regulated broker
- chargeback