Fintech niche is booming and bringing entrepreneurs huge profit, but there is a reason why most people don’t even consider opening a fintech project. That reason is complexity of the opening process. Registration, licensing and starting capital requirements are hard to comply with without solid budget and a team of advisors. And of course, hiring a team of advisors means even more expenses. However, there is a better way. With a right white label solution you can launch your own fintech business in 2 weeks at a cost of building a simple website. How is that possible?
The key principle of a white label business is simple: company A invests in development of a product (usually a complicated software), starts its own business in one region and then lets other companies from the same or other regions use their platform under their own label. Company B connects its own domain to A’s software, but this process is invisible for the end clients. Company B clients come to B-brand and have no idea that all the backoffice operations are handled by company A.
When people think of financial and investment business, first thing that comes to mind is a Brokerage Company, but this niche is overcrowded and highly competitive. Luckily, there are better alternatives to make money in fintech. One of the fast-growing yet relatively new options is CopyTrading. Some analysts and industry experts believe that CopyTrading has even higher potential than trading itself. Here is why: all traders can be divided into 2 groups
Majority of market participants are retail-traders. Many of them are new to this and struggle to make profit, others don’t have enough time to devote to trading.
What they all have in common is willingness to make money with minimum effort from their side. This desire attracts them to copy-trading. This service allows people skip the learning stage, all they need to do is select right traders to follow and watch how the software copies their trades for them. On top of that, copy-trading services are provided for free for the end users.
Effective copy-trading requires a complicated software. It has to be reliable, send signals in milliseconds and offer simple user-friendly interface.
Based on their situation, a potential white label partner may act as a private person or as an legal entity. The partner signs a contract with a well-known brokerage company, then white label solution provider sets up integration with the broker’s trading platform.
Then, a client who wants to use CopyTrading services has to open an account at the given brokerage to do so, or connect an existing account if he is already broker’s client.
This scheme is very attractive for investors because they trust their money to a reputable company licensed and registered by the Government and legally regulated. And it is also very attractive for a startup business, as white label partner can officially skip complicated registration and licensing process without breaking any law (depends on jurisdiction you consider to market the product).
The new business grows on pre-existing eco-system. White label partner gets his profit from the brokerage: a brokerage charges traders its regular commission and shares part of the profit with a white label partner. That means no extra cost for the client, profit for a white label partner and more profit for the brokerage from the clients attracted by the white label partner.
Jivestor’s analysts have analysed this market and performance of their partners and offer the following average financial model, which can be used as the foundation of your business plan.
A partner with 100 investors with an average deposit of USD 1,500 can make roughly $20,000 per month, given that their commission is $5 per lot.
However, this is just the average number and doesn’t guarantee the same results for any new copy-trading white label. Based on the efficiency of your strategy these number can be a lot more higher or, on the opposite, a lot lower. Jivestor provides potential partners with everything they need to succeed in this business, but the rest depends on the actions of the partner.
Before you can attract clients to copy-trading you need to have good strategy providers, otherwise whose trades will they copy? Jivestor’s offers several solutions to this dilemma:
A huge advantage of the white label business is that there is no need to invest in building a website, hiring your own tech support and servers. As a white label partner you buy a ready and tested product where all tech issues, including the set up process are handled by the software provider. All you will have to take care of is marketing and customer service department, which at the beginning can consist of a single person and that person could be yourself.
A white label partner receives working product and business model that has already been tested on thousands of clients. Together with a website you receive qualified answers on your numerous questions regarding opening, operating and scaling up this business.
Instead of spending 6-12 months on developing own product from scratch and then registering and licensing a new financial company, a white label partner can launch his own business in as little as 2 weeks.
Now, when you can clearly see the business model and potential profit, it’s time to think of the advertising tactics. What can you do to attract the first 100 clients that will bring you $20,000 per month?
Speaking of marketing, software provider offers extensive support and tested and proven ways to attract clients, but you can always choose to try your own ideas.
There are 2 main roads to getting your first 100 and even more clients:
For the records, Google receives over 20 000 daily searches with such phrases as “trading signals”, “copy trading” or “social trading” (a synonym to copy trading), which clearly indicates that size of this market is huge and there are a lot of opportunities open for new players.
A good advantage of Jivestor is that this platform is offered in 10 languages (English, Chinese, Spanish, Portuguese, Russian, Arabic, French, Thai, Indonesian, Vietnamese) and they offer new localisations regularly, which lets you grow into an international business.
White label is an easy and financially savvy way to open a financial startup business. It is more flexible than franchise, because as the business grows, you can choose to create your own brokerage or copy trading service under the same label. Good news is that you will keep your brand and your existing clients instead of starting from scratch.