Other than this all that is needed is for the broker to determine their own branding and put in place a marketing campaign to attract new clients to their platform. As a result there are now well in excess one hundred different brokers to chose from when opening an account.

This number is added to daily as the potential for building a profitable business from binary options is huge. Running a brokerage operation has high rewards if you are able to build sufficient clientele and maintain a good turnover in contracts. This glut of brokers that has been fueled by white labeling has however proved to be something of a double edged sword. This can spell trouble for traders. A large amount of commonality exits between the different platform providers as they each seek to meet the trading requirements of ever more sophisticated and demanding traders.

Key features such as short term contracts, Rollovers, Double Ups and mobile trading are now almost universally available should the broker wish to offer them to their clients. Picking a broker is not simply a case of deciding on which platform to chose. The result is a crowded and confusing marketplace where the decision on which broker to use has become unnecessarily complicated.

Once the broker has established their brand and set their trading solution live, the only way in which they can differentiate themselves from their competitors is by offering a better service to their client.

In fact in many instances, the only areas in where brokers do differ is when it comes to support. Offering educational materials, market updates and trading ideas is just one example of the value that a broker can offer their clients over the typical white labelled trading platform. Many of the more established brokers are strong in this area. They will provide materials that can really add value , such as tutorial videos, eBooks and regular Webinars. Although on the surface, the wide range of white labelled brokers looks to offer increasing choices for the trader, the reality is that it simply crowds the market place with too many similar offerings.

Given that most only offer the same trading platforms as man of the more established brokers, there would seem little incentive to open an account with them, given they are often an unknown quantity with little in the way of a track record or indeed, resources. You have to do a little research with the last group take a look at our broker list, for example , but it is well enough to test one broker of each of the first three groups.

We would recommend staying away from all of these white label brokers, but more on that later. For now, the important point is understanding the system. There are three white label brokers, and regardless of which of their brands you use, you always trade with the same system. The most popular TradoLogic brand is a broker called Option Bit. When you open the Option Bit website, Google Chrome will issue a warning message that you are dealing with a scam.

This warning is well-justified. The problem with TradoLogic is that you are gambling against the house. Regardless of which brand you are using, TradoLogic creates the payouts and the binary options types in which you invest. Just like a casino only offers games of which it knows it will make a profit, TradoLogic only offers payouts that are in their favour. This system is not inherently bad. There are many gambling games online.

Some are based on cards, others on slots or roulette balls. Why not have one based on the financial market? Similarly, the fact that you are investing against your broker would be fine as long as your broker offers fair payouts that only take as much money from you as you would pay in fees with other forms of investing.

In this case, the system would be the same as with other financial investments. Some traders would make money, some traders would lose money, and the broker would take a cut when the money shifts from side to side.

This is how every financial market works. Apparently, one popular method is to deny the traders the withdrawal of their money based on alleged security concerns.

The TradoLogic withdrawal process is intentionally complicated, which makes it difficult for traders to do everything right. For some traders, small mistakes meant that they will never get their money back. This behaviour is unjustifiable. Internet security is important but hiding behind its mask to keep a traders money is wrong. Other traders reported that they were pressured into making large deposits. Once they had put in a little cash, their personal consultant called them, urging them to invest more in exchange for additional bonuses.

These and other similar tactics are covered in more detail in our scams page. Some traders report that TradoLogic promised them features such as personal account managers that failed to work in their best interest. While their account managers urged them to deposit more money, they became silent shortly after the traders complied with the request. Similar reports extend to customer support.

Traders complain that the staff was either incompetent, overwhelmed, or simply absent. In any case, they were unable to provide help. Finally, TradoLogic brands often advertise much higher payouts than you can actually achieve.

While there are claims of payouts around 90 percent, the average payout in real-life trading is often significantly lower. This difference is a problem because payouts are the number one factor in your success. Since you get a payout with every single trade, lower values accumulate in the same way as with the rice grain and the chess board.

Short-term investments such as binary options allow you to make many trades a day, which is why these effects will accumulate quickly. All three of the big white label binary options brokers are based in Israel. The Israeli government has grown so disenchanted with them that they have undertaken significant legal actions to crack down on white label brokers.

If you have experience of the world of binary options or have spent some time looking for an account then you will no doubt have spotted a lot of similarity between the various brokers that occupy the market space. You could be forgiven for thinking that there is actually very little to choose between many of the brokers out there.

In this article I talk a little more about what this means. A White Label is a product that is produced by one company and then sold on to another, allowing them to make use of the original product and features while branding it as their own. In the case of Binary Options, this is the online trading platform.

The software based trading solution subsequently packaged and re-branded allowing a new company to quickly come to market and offer a fully featured binary options trading solution. Since inception the binary options industry has become awash with white labeling opportunities.

Notable providers of this service include SpotOption , Tradologic, MarketsPulse and Techfinancials. Each of these companies provides a dedicated binary options solution that offers the opportunity for the respective platform to be white labelled and taken to market by a prospective broker.

Bringing a new binary options broker to market using this technique is actually very straightforward. Setting up a new broker only requires a relatively small investment in order to fund the venture.

Providers will generally help the broker with the setup of the software, front and backend integration, as well as providing ongoing maintenance and support for a fee. Other than this all that is needed is for the broker to determine their own branding and put in place a marketing campaign to attract new clients to their platform. As a result there are now well in excess one hundred different brokers to chose from when opening an account.

This number is added to daily as the potential for building a profitable business from binary options is huge. Running a brokerage operation has high rewards if you are able to build sufficient clientele and maintain a good turnover in contracts.

This glut of brokers that has been fueled by white labeling has however proved to be something of a double edged sword. This can spell trouble for traders. A large amount of commonality exits between the different platform providers as they each seek to meet the trading requirements of ever more sophisticated and demanding traders. Key features such as short term contracts, Rollovers, Double Ups and mobile trading are now almost universally available should the broker wish to offer them to their clients.

Picking a broker is not simply a case of deciding on which platform to chose. The result is a crowded and confusing marketplace where the decision on which broker to use has become unnecessarily complicated. Once the broker has established their brand and set their trading solution live, the only way in which they can differentiate themselves from their competitors is by offering a better service to their client.

In fact in many instances, the only areas in where brokers do differ is when it comes to support. Offering educational materials, market updates and trading ideas is just one example of the value that a broker can offer their clients over the typical white labelled trading platform. Many of the more established brokers are strong in this area.

They will provide materials that can really add value , such as tutorial videos, eBooks and regular Webinars. Although on the surface, the wide range of white labelled brokers looks to offer increasing choices for the trader, the reality is that it simply crowds the market place with too many similar offerings.

Given that most only offer the same trading platforms as man of the more established brokers, there would seem little incentive to open an account with them, given they are often an unknown quantity with little in the way of a track record or indeed, resources. When it comes to depositing your money in a trading account, we recommend that you stick with established trusted brokers so that you know they it will still be there the next time you go to trade.

White Label Solutions A White Label is a product that is produced by one company and then sold on to another, allowing them to make use of the original product and features while branding it as their own. Which White Label? Differences Once the broker has established their brand and set their trading solution live, the only way in which they can differentiate themselves from their competitors is by offering a better service to their client.

Tread Carefully Although on the surface, the wide range of white labelled brokers looks to offer increasing choices for the trader, the reality is that it simply crowds the market place with too many similar offerings. The Five Most Common Binary Options Complaints Five Rules For Staying Safe When Trading Binary Options Binary Options Forums - Pros and Cons.

Decide for yourself whether you want to sign up with a business that faces this kind of trouble. At minimal cost White Label MT4 opens access to trading platforms with powerful functionality. Differences Once the broker has established their brand and set their trading solution live, the only way in which they can differentiate themselves from their competitors is by offering a better service to their client. Economic Calendar Compare FX brokers spreads LIVE. The software based trading solution subsequently packaged and re-branded allowing a new company to quickly come to market and offer a fully featured binary options trading solution. They provide the trading platform, the payment management, the customer support, and other essential features for their brands.

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