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Vladimir Kisyov


system requires a supplier with proprietary experience, producing application interfaces or bridges to their own risk management systems or the systems of the prime brokers providing the liquidity,” Kisyov adds. According to Rasoul the banks may also be looking to offer the most sophisticated selection of FX products with a more institutional flavour: “Tey might want not only spot trading but forward contracts, NDFs and even currency derivatives and they feel it should be a more institutional and professional feel.”


Do you need all the features?


“Some firms are now offering two White


Labelled solutions in order to offer different platforms and features, giving their clients more choice even if most of the financial instruments overlap,”


of whom have a lot of experience marketing to or servicing retail brokerage clients online. For banks, White Label solutions are a good option,” says Rasoul.


According to Kisyov, in these circumstances WL solutions can often become very complex. “Sometimes you can’t generalise about the solution as it’s specific to each company and being able to supply turnkey solutions on top of the White Label is important,” he says. “Being able to take the most popular retail component like MetaTrader and connect that to the bank’s own


But understanding your market is critical, as is whether you really need all the features a White Label could offer. “An experienced White Label provider can provide custom solutions. Tis allows clients to focus on what’s important to their target markets, whether that be specific currency pairs, custom tools like branded mobile apps, or automated trading capabilities. An off the shelf solution will not be successful – the retail FX market is too competitive,” says Rasoul.


As that level of sophistication comes, so do a plethora of feature-rich White Label solutions and not always for the better. “I think one of the mistakes companies make in the world of electronic trading is forgetting that trading itself is a relatively simple process. Clients want to buy and sell quickly and the vast majority want a platform that’s simple. It’s nice to have bells and whistles but a lot of it can simply be noise,” warns Jonathan Brewer.


“Tere’s a whole industry built around MetaTrader plug ins. Some are good, some are complex and some are an accident waiting to happen and the brokers have to consider this risk,” he adds.


Brewer also points to another issue brokers should consider: “Te market is now aware of the elements like reliability, spreads, commissions and liquidity, but something that often gets overlooked when selecting a White Label provider is to consider whether they are competing with you in the retail market.”


“Large players are offering systems to White Label partners but then also providing the identical systems to their own retail customers. Tis means that they’re directly competing with their White Label clients. Tat seems pretty counter-intuitive as a business model to me and I am amazed that the broker taking the White Label seems not to consider this as a primary factor in their selection process. It’s a


INSTITUTIONAL FX SERVICES - THE BROKERS HANDBOOK 2012/2013 | 41


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