When setting up their own platforms, brokers can choose between a white-label and a proprietary solution. For startup forex brokers, opting for an MT4 white-label solution is undoubtedly the most cost-effective and sensible choice. It not only helps brokers save time but also allows them to obtain one-stop technical services at a lower cost.The process, costs, and key considerations involved in building a platform using an MT4 white-label solution are of great concern to many forex brokers.
(I) Process Steps
Setting up an MT4 white-label platform generally involves seven steps:
- Register a Company
To establish a forex company and operate a forex brokerage business, you must register the company and obtain a regulatory license. Since there is no authoritative regulatory body in China, you will need to register the company overseas.Regulatory policies and fee structures vary by country and region. The United Kingdom, Australia, and Cyprus are currently the most popular jurisdictions for applications, though you may also choose to apply in certain offshore islands.
- Trading Software
White-label companies do not need to develop their own trading platform software; instead, they provide trading software services to clients by applying for the right to use the MT4 platform. Once approved for MT4, the company can attract clients under its own brand and provide them with the MT4 forex trading platform.
- Server Setup
Brokers need to set up servers for the MT4 platform to process trade orders and transmit transaction data. High-performance, highly stable MT4 servers ensure a positive trading experience for clients.
- Liquidity Integration
Brokers can choose to share liquidity with a master-branded company or connect directly to liquidity providers to route trade orders to international markets for processing.
- Clearing Bridge Setup
Setting up an MT4 clearing bridge allows client orders to be routed directly to international clearing institutions for processing, without the need for back-office traders to intervene.
- CRM System Implementation
By implementing a CRM system, brokers can manage users more effectively, collect user trading data, and interact with users.
- Payment Channels
You’ll need to partner with third-party payment providers to meet daily transaction needs; offering a variety of third-party payment methods can attract more clients to fund their accounts.
( II ) Costs and Expenses
Typically, setting up a full-featured trading platform can cost millions, whereas an MT4 white-label platform requires only several hundred thousand RMB. What specific costs are involved in setting up an MT4 white-label platform?
- Company Registration and Regulatory License Fees
The cost of registering a new company domain name is relatively low—only about 100 yuan per year—but regulatory licenses incur significantly higher fees, as regulatory agencies in different countries or regions charge applicants varying annual fees.
- MT4 Software Rental Fees
MT4 white-label providers charge a monthly fee. If a company offers both the MT4 desktop and mobile app versions to its clients, the monthly fee is typically around $2,000 to $5,000.
- Third-Party Payment Fees
Third-party payment platforms provide settlement and integration services to brokers, typically charging a percentage of the funds (5‰–9‰).
- Liquidity Fees
Depending on the liquidity provider, brokers are required to pay liquidity fees to the provider based on either trading volume or a monthly fee.
In addition, the company incurs costs related to day-to-day operations, such as personnel expenses, training costs, and fixed costs.
Points to Note
First, pay attention to the comprehensiveness of the services.Check whether the white-label provider offers a comprehensive, one-stop platform setup service—including company registration, regulatory licenses, liquidity integration, and the entire process—to ensure the continuity of all aspects of the platform system. Second, with your long-term development in mind, it is best to choose a white-label provider that offers post-launch operations and maintenance services. Finally, you should also pay attention to the platform’s compliance.
Update 1: MT4 and MT5 White-Label Services Terminated by MetaQuotes
According to industry insiders, numerous white-label trading platforms have received notices from MetaQuotes requiring them to cease using its MetaTrader 4 and MetaTrader 5 software within a specified timeframe. This significant development means that brokers can now only obtain genuine MetaQuotes trading software through the MT5 main brand.
Update 2: MT4 and MT5 Software Removed from the Apple App Store and Google Play Store in North America
The globally popular trading platforms MetaTrader 4 and MetaTrader 5 were removed from the Apple App Store on September 23. Users can no longer download the iOS versions of MT4 and MT5 from the Apple App Store (users who have already downloaded the apps are not affected). This news sparked widespread discussion in the trading community.Google followed suit shortly thereafter, removing the software from its North American app store.
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