If you’re looking to launch an options trading service or redevelop your current offering, you’ve probably looked into white label platforms.
“White label” essentially means when a product is pre-manufactured or designed and tweaked for use by another company. So, with a white label options trading platform, the idea is that you have access to a ready-made trading system that you can brand and market as your own.
But how do you know if white label platforms are right for your options trading service? Start by weighing up their pros and cons.
3 Benefits of a White Label Platforms
A Hands-Off Approach
A major benefit of buying a white label options trading platform from a reputable company like Devexperts is the lack of work required.
The provider handles pretty much everything in the underlying infrastructure, including order execution and security, while you can put all of your focus into the things you’re good at, like customer acquisition and branding.
Cheaper & Faster Speed to Market
Because white label platforms are pre-built and only need a few branding tweaks, buying one for your company allows you to launch your trading service in a matter of weeks, not years.
Plus, you won’t have to foot the high development costs of building your own software, so you can keep your budget under control. That’s especially important when you’re a startup with a limited budget.
Scalability
Scalability is another big benefit of white label platforms. You can simply ask the provider to increase server capacity and add new features and tools as your audience grows, without you having to invest heavily in making infrastructure upgrades.
2 Drawbacks to Be Aware Of
All their benefits aside, white label platforms do still have some drawbacks to be aware of. These include:
You’re Reliant On A Third Party
The main drawback is that you’ll have to rely on a third-party provider, not just to provide the platform in the first place but to keep it up and running.
That means you have limited control over potential scenarios that could cause issues for your customers, such as if the software company’s service experiences downtime or technical issues. Plus, you’ll be limited when it comes to how much you can change the platform’s core functionality, which can make it harder to establish a USP and give customers a reason to choose you instead of your competitors.
Costs Can Rack Up
Finally, you’ll need to think about licensing fees with a white label platform, which can be high and are usually ongoing.
Over time, you might even find that what you’re paying for your platform can exceed what you would have spent building a custom platform, especially if you scale to a large user base.
Takeaway
When you’re deciding whether a white label platform is right for you, assess your goals and budget and make your decision from there. If you want to launch quickly and don’t have the resources to put into custom development, a white label product can get you started. That’s what makes these platforms so beneficial for startups in particular.