What to choose? White label MT 4 /5 vs MetaTrader 4/ 5 Full License
Taylor Bingwa, Customer success manager UpTrader
For entrepreneurs who are only starting their own forex brokerage companies it’s not easy to realize which kind of a platform (MetaTrader 4 or MetaTrader 5) to choose and whether to buy a full license or a white label? It seems the differences, pros and cons are clear in general, but when it comes to the final decision, one might start to wonder what to choose. MetaTrader 4 or MetaTrader 5? What is better for business? A Full license or a White Label? Where are the benefits? As it is known the devil in the details. Let’s find it out.
Full license or White Label MT4 / MT5?
Let’s start with the definition of a White Label.
White Label is a type of a collaboration where one company rebrands services or products of another company and sells them as its own. In the forex world the term White Label is most often used for reselling MetaTrader 4 or MetaTrader 5 trading platforms. Only brokers which have a full MetaTrader license can provide MetaTrader White Label to other companies. They create new account groups, allocate space on their servers, and supply companies with their technical support staff. All these features are necessary for new brokers, but they can cost a lot in case they do it by themselves. That is why new companies prefer White Label rather than a full MetaTrader License. White Label allows you to get great services at a great price.
Pros and cons of buying a MetaTrader 4 / 5 full license
If you start a Forex brokerage firm, you definitely need to decide whether your clients will work with MetaTrader 4 or MetaTrader 5? In case you prefer to work only with MT4, your only choice is to buy White Label MetaTrader 4, because MetaQuotes stopped selling full MT4 licenses in 2020. So now only companies that bought licenses before 2020 can continue working with MT4 server. The rest of the companies can buy only the MT4 White Label. But anyway the MT4 license cost a fortune, so small brokers barely could afford it.
In case you are ready to work with MT5, you can buy the license directly on the MetaQuotes website. They offer a free set up and a $5K monthly fee. In addition you will have to pay $200-300 per month for servers and around $10K for your staff. To cut these costs you can outsource staff and server support to UpTrader, it will cost only $2000 per month.
Comparing White Label MetaTrader 4 to White Label MetaTrader 5. What to choose?
Actually, there is no right answer, both are perfect for trading. The choice depends more on your current business and future plans. But we have to mention that MT 4 developer MetaQuotes stopped selling MT4 a year ago, and now the main MetaQuotes product is the terminal MetaTrader 5. It means that there are no plans to develop the platform MT4, all resources are allocated to MetaTrader 5. By this the developer shows its intentions to advance only MT5.
MetaTrader 4 White Label will be the best choice for their own brokerage firm only for IBs (Introducing Brokers) whose clients are already used to MetaTrader 4. This is a right decision for this kind of Introducing Brokers. If you need WL MT4, White Label Forex Provider UpTrader has this option as well.
Talking about pros and cons of MT4 and MT5, just take a look at the comparison table with details about each one.
Also take a look at metaquotes’ table.
If it’s necessary for you to work with MT4, you need to choose a dependable provider.
If your choice is MT5, you can choose between MT5 Full License, MT5 White Label or the MT5 Full License + server and stuff outsourcing.
If you buy the MT5 Full License and manage the MT platform and servers by yourself, you pay around $15K per month. But your business is absolutely independent and you can do anything.
If you buy the full license and outsource server management and technical support staff, you pay around $7K. In this case you save a lot of money but still have flexibility in trading condition settings.
If you buy White Label from UpTrader, you pay $4000 per month and get a fully ready to use broker. But you don’t have wide opportunities for your own settings. Still, you will have a choice of our ready-to-use settings, which are already tailored according to the best practices of the market.
Any questions left? Contact us and we will help you get answers.
Leave a request at uptrader.io and we call you back ASAP.
Launch market analytics feed in your Forex CRM
Which extra services do you offer your clients? If you think that a trading terminal, fast fund withdrawal, and copy trading services are enough to keep your clients loyal and satisfied, then you may not know your clients very well or have never tried to offer them something else.
One of the UpTrader brokers broadcasts a daily stock market analytics feed and technical analysis to its clients right in their personal account. Its CEO kindly allowed us to analyse their data for 2021. We considered two client groups: those who read analytics and those who do not. The results speak for themselves.
In 2021, customers who read analytics deposited on average 15% more per customer compared to those who did not use this tool. The median bill was 25% higher. At the same time, their trading volume increased by 230%!
Do you want the same results? Easy-peasy!
Daily up-to-date market analysis available in the trader’s room might increase the trading volumes of your company, resulting in more potential profit. This tool is already integrated into the UpTrader Forex CRM, however, only a few of our clients use it for additional sales.
Every day, market experts collect information, prepare materials, and publish technical and fundamental market analysis used by thousands of traders around the world.
This tool is already available to you in UpTrader Forex CRM. To begin broadcasting the feed, contact our support team, and you will gain access to an excellent tool for increasing sales and loyalty of your customers starting tomorrow.
Withdrawing funds from trading accounts is a very important part of business, because there are plenty of underlying issues that can cause serious reputational consequences for a broker and stress for clients. Fraud, stop-outs, withdrawal requests for a bigger amount than available equity, mismatch of payment details, problems with payment systems, KYC/AML non-compliance and a lot of other problems.
To avoid these problems and make withdrawals without risks for a broker and fast for a client, it is better to follow a certain procedure, where every step is under control of your departments. Your Forex CRM must have flexible settings of an approval withdrawal system.
The UpTrader team has developed a flexible withdrawal approval system that is integrated in UpTrader Forex CRM. For example, you can set it up so that your CEO will be making final approval of withdrawal requests of certain big amounts. You can set up this rule for all requests or only for those that are already approved by lower-ranking staff. It’s up to you. It is very important to verify your client with a KYC check, confirm payment details, to do this just direct all requests through a Compliance department. In some cases you might need requests approved by a phone call, so that you are sure that requests are submitted by a real client, not a scammer, so you can set up obligatory manager calls.
All these settings can be easily added in UpTrader Forex CRM.
UpTrader Forex CRM has the following settings you can use:
1. Approval depending on request amount
Withdrawal control is a standard and necessary procedure for financial broker security, but this doesn't have to prevent traders from withdrawing and depositing money quickly. For example, you can allow to withdraw all requests under $100 without additional checks. It means any withdrawal under $100 will occur automatically, but in a case you want to manually approve any amount, you can do it.
2. Know your client system in your Forex CRM.
Establish a rule that requests of any amount are directed to a Compliance department to complete KYC procedures.
3. A withdrawal amount is larger than the client’s deposit
If you hedge risks and use a hybrid model and a bridge, you probably need to control trading activity especially in an important market news period to control financial risk.
If you have special needs related to withdrawal approval procedures, write to [email protected] and we will see what we can do for you.
The main annual international fintech exhibition iFXEXPO will be held on 4-6th October 2021 in Cyprus. Vasily Alexeev, UpTrader CEO is going to be there. He will represent the UpTrader team and be ready to meet with our clients and partners.
UpTrader has released new services this year like a copy trading platform for MetaTrader 4 and MetaTrader 5, and it will be a pleasure to show you this popular service.
We are glad to invite all our clients and partners over there. This is a good occasion and nice place for efficient networking.
To make an appointment with Vasily Alexeev, please write to [email protected]
See you there!
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