Category binary options trading platform white labels
The brand is spread across hundreds of brokers and well known for a couple of things. One of them is versatility and depth of the platform.
They have long been an innovator when it comes to binary options trading and features important to traders. Another is that the ease of use on the broker side and largely unregulated nature of binary options has made them a favorite of scammers. There are many regulated and trusted brokers operating under this banner and more are sure to come.
SpotOption itself is licensed by CySEC and has recently opened a new office in London for the express purpose of servicing regulated binary options trading in the EU. They also have a similar office in Hong Kong, servicing the Asian market. When it comes to individual brokers there are some variations depending on which version of SpotOption they are running and which features they choose to run.
For the purposes of this review I will be focusing on the latest version but I will touch base on the evolution before going on. The original platform, simply called SpotOption, was advanced but buggy. Some brokers are still running on the original but most are using the more advanced Spot2 platform.
This platform has expanded features to include CFD and spot forex trading, copy trading, Ladders, more advanced charting and fixed some bugs found in the earlier version. In terms of strategy and time frame the platform can be used for them all. Exotic options include Pairs, One Touch and Ladders. One Touch options require only one touch of a set strike price before expiry.
They trade when the market is closed and have expiry like end of next week or at the close of tomorrow. The copy trade feature, known as SpotFollow or iFollow, is powered by the same algorithms that operate the eToro forex social trading platform. You can trade iFollow on eToro but it is not recommended. The best method is to use a good, regulated, SpotOption broker but be warned, copy trading is very risky. The system uses a leader board that can be filtered by asset, success rate and etc.
You set trades with limits like trade size, total amount to be risked, how long you follow and how many trades you will follow. White label CFD brokers allowed them to offer the service to customers without having to develop their own products — a win-win situation.
Adapting the same idea to binary options seemed like a logical step. Creating a trading platform is a difficult and expensive process and there are many requirements that the platform has to deliver. Prices have to be on time and exact, the execution of trades has to be spot on, and customer management and customer support require huge systems.
A single mistake in one of these areas could land someone in jail. In this environment, it makes sense that new brokers decide to purchase their systems from a trustworthy source with a lot of experience.
White label brokers make up almost the entire binary options market. Of the many, many binary options brokers, only a handful uses their own trading systems. All other brokers use the systems of white label brokers. There are hundreds of brokers but only about a dozen trading platforms though these numbers keep changing.
White label brokers provide all the systems that you need to create a binary options broker. In detail, those systems are:. The trading platform is the part of the broker that traders use to invest. Good trading platforms are difficult to create because they have to provide accurate analysis tools, precise prices, and simple investment opportunities.
Each of these complex systems requires huge amounts of data and takes a lot of time to program, which is why many new brokers are reluctant to program their own platforms. White label brokers provide platforms that brokers can use.
They also allow them to adapt them to their needs. Every broker can apply their own styling, choose the colours, and adapt the layout of the platform. They also select which trading tools to offer, which assets, and which analysis tools.
White label brokers offer the toolbox that new brokers can use, but the brokers decide how to use them. Brokers need a website on which they display the newest information, their businesses, and a signup form.
These websites are created with content management systems. Content management systems are complex programs that allow you to easily manage your website. Once you have such a system, managing your website is easy. But programming it is complicated, time-consuming, and expensive. This is why most brokers prefer to buy pre-made content managements systems.
White label brokers offer these systems, including special features for binary options such as economic calendars. When you look at the websites of binary options brokers with this knowledge, you will find that many of them are similar in structure and content. These brokers all use the same white label broker. Customer relations management is a necessary but expensive part of any business.
Answering customer requests requires a lot of man power, and for small businesses, it is disproportionally more expensive than for larger ones. For new brokers, it makes sense to outsource the task. Otherwise, they would have to employ several customer service people with their first customer — which would ruin them. White label brokers allow many brokers to share the same customer relations management. When you accept online payments, there is a lot to consider. New brokers need a secure, unhackable system that is easy to use and works in combination with as many payment options as possible Skrill, Paypal, Wire transfer etc.
Such systems are complex and expensive to create. Therefore, it makes great sense for new brokers to buy pre-made systems. White label brokers offer payment solution integration. This means they offer pre-made systems that can handle customer payments and withdrawals, automatically book deposits to the right accounts, and make sure that the money is safe. Starting a new binary options broker can be risky.
In the worst case, a new customer deposits a lot of money, invests everything in one trade, and wins. This could ruin the broker. When brokers become bigger and have thousands of customers, they will experience less volatility because the actions of many traders will even out more.
But to survive the start, they need a good risk management solution. For brokers, these systems are the insurance that guarantees their survival, which is why many brokers use them.