Smart Broker Solutions Expands to Asia, Bringing Clarity and Transparency

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Smart Broker Solutions, a premium Forex brokerage solutions provider, has expanded to Asia to help Introducing Brokers (IBs) take their businesses to the next level. The company has provided a list of things to analyze when looking for a proper technology partner like Smart Broker Solutions.

Smart Broker Solutions

Smart Broker Solutions

There are obviously a variety of components, modules, and system architectures which makes things a bit more complex at the beginning, but they enable you to have and control YOUR OWN BUSINESS

Smart Broker Solutions, a premium Forex brokerage solutions provider, has expanded to Asia to help Introducing Brokers (IBs) take their businesses to the next level. In its dealings in quickly-growing Asian markets, Smart Broker Solutions has noticed that inquiries and discussions with IBs normally have something in common: a lack of in-depth understanding of what different providers offer. Moreover, IBs are prone to being misinformed or misled into purchasing other forms of IB structures from particular providers' packages that they may not really need for their business’ future.

In an initial stage, it is normal to mix things up, and IBs don’t know if they are choosing a broker that provides them with a so-called "Grey Label" solution or if, on the other hand, they are working with an independent “White Label” technology provider like Smart Broker Solutions that allows them to actually own their own businesses.

Smart Broker Solutions intends to clarify the different types of companies in the Forex technology providers market, what they normally offer, and what future brokerage company owners can expect from them. Like in any other business situation, each option has pros and cons. However, the final decision must be driven essentially by the business models and the launching strategies that the IBs want to pursue.

Normally, a "Grey Label" provider is also a broker, which is why they can offer certain number of features that "White Label" technology providers cannot. One of these features is the regulated entity behind the brand. That’s an advantage, but there are 6 key factors to consider as an Introducing Broker looking to establish independence and control a whole business:

1) With "Grey Label” options, clients deposit their money in the broker (mother company) account. This means that the IB has no control over the clients’ funds.

2) With "Grey Labels,” IBs are paid a commission according to their negotiation skills with the broker, not according to what their own clients are being charged.

3) With "Grey Label" solutions, IBs get paid what brokers calculate at the end of certain periods established by the brokers unilaterally.

4) With the "Grey Label," clients are at risk of not being accepted by the broker’s compliance department for several KYC – AML reasons that IBs normally don’t know about. Here are some standard requests that could lead to the loss of clients:

a. Two different forms of ID
b. A request that documents are sent to the broker certified (according to Compliance Officer standards) to get accounts approved
c. Two forms of proof of address
d. Proof of funding origin
e. Various checks run on clients according to international blacklist search engines

5) Typically, "Grey Label" broker providers set spreads and execution parameters, so IBs and their clients have to adapt to their business decisions. It makes more sense for business owners (IBs) to make these decisions themselves in order to avoid forcing clients to adapt to different practices.

6) Last but not least, IBs lose clients to "Grey Label" providers, since the client actually belongs to the broker, not to the IB. Even though they may seem loyal to IBs—a misconception that Smart Broker Solutions hears all the time—clients may be lost in future migrations to independent brands.

Most IBs will find that an independent, “White Label” solution fits their business needs better.

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Manuel Lopez
since: 11/2015
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