White labelling your tech is a popular and convenient solution for brokerages, for obvious reasons. Developing trading software in-house is enormously complex and expensive. It makes sense to choose flexible ready-made technologies with a proven track record. But there is a third option. Rather than developing their own software or opting for an off-the-shelf solution, some companies outsource production to third parties. 

Outsourcing is certainly more affordable and practical than developing your own software. It also allows companies considerable scope for customisation. However, outsourcing may not be the optimal solution for most brokers. Even if you outsource the development, there are numerous – often complex – design, compliance and integration issues you need to deal with. For these reasons, white labelling is often the preferred broker solution.   

Software is specialised 

Before we investigate the pluses and minuses of white labelling vs outsourcing, let’s remind ourselves of the sheer scale and complexity of building advanced software. Even if you had limitless capital, producing software doesn’t just happen – you need teams of developers, security experts, product managers, and so on. You must test and refine your code, and ensure it meets user needs. Plus, you need to get your design and UX right, and ensure your front-end teams coordinate effectively with the back-end developers. And so on… Before you know it, you would have established an entire software division just to build and maintain a functioning product. No wonder even large firms rely on third party providers for their tech stack. 

Built for trading compliance? 

When you outsource production of your trading platform, CRM and other elements of your tech stack to a quality developer, you’ll be in good hands from a technology point of view. But great developers aren’t necessarily experts in financial services best practice.  

Operating a brokerage or financial services business requires meeting stringent regulations governing everything from user experience to data security to the kinds of services and messaging that is permissible.  

By contrast, specialist integrated trading tech is designed with compliance and best practice in mind. And, critically, when the regulations change, the best white-labelled platforms are updated to anticipate and meet these changes. 

Getting to market: the white label advantage 

Getting to market quickly is a business priority. With a suitable white label solution, you can plug and play a suite of world-class brokerage technology. That means no lost market share due to development times (and the inevitable development delays). Instead, you can implement your strategy as soon as you identify an opportunity. 

Avoid outsourced obsolescence  

One motivation to outsource your tech development is the degree of customisation. If you can afford it, you can build it. But what happens when the market shifts, or the regulations change or your strategy gets revised? Do you rebuild your platform or make do with what you’ve got, how suboptimal under new conditions?  

With the right white label solution, you can be sure your tech stack meets the latest security and best practice standards.  

More than a technology partner 

Choosing a white labelled trading system provider should align with your overall business plan. As a broker, you need a technology partner that can support your business. 

Finalto’s trading technology is continually evolving to meet clients’ needs and market requirements. However, as a leading prime broker, we don’t just offer world class technology. Our liquidity services and data solutions are part of our integrated service offering, ensuring brokers have the support they need to gain a competitive edge. 

Want to learn more about using Finalto’s powerful, cost-effective fintech to power your business? Get in touch to learn more about our services, technology and world-class white label trading solution.  

Simon Shear

Content Writer at Finalto

All opinions, news, research, analysis, prices or other information is provided as general market commentary and not as investment advice and all potential results discussed are not guaranteed to be achieved. The information may have been derived from publicly available sources, company reports, personal research, or surveys. Past performance is not indicative of future performance. Trading carries risk of capital loss. Service available to professional clients only.