If you are currently searching for the best binary option broker on different websites and forums, you should certainly have encountered the term “White label” or white label partnership. You are currently looking to open a trading account with a binary option broker but you only find few differences between all the brokers available. This is not entirely false; nevertheless, there exists small discrepancies between broker offers that can truly make the difference. For instance, we highly recommend you to avoid white label brokers.
White label broker definition
A white label is a solution that is designed and provided by one company (most of the time a software or platform company like techfinancials) and then sold to another company (a broker brand that will use this solution to attract customers). The fully operational platform enables new brokers to quickly come to market and offer a fully featured binary option trading solution and platform. The platform and solution will be re-branded according to the broker’s preference.
There are now multiple white label solution providers. The most recognised on the market include SpotOption, Tradologic, MarketPulse and TradeSmarter. Each of these software companies is able to provide any new broker with a dedicated and custom binary options trading solution. This is the main reason why most withe label brokers are almost all offering the same features, returns and available underlying binary options asset. The only added value of the newly created broker is to design its own brand environment and implement a marketing strategy to attract the targeted customers.
The disavantages of white label brokers
These withe label partnerships have fuelled the explosion of the number of new binary options brokers. The relatively low barrier to entry in order to set up a broker solution has encouraged this multiplication. Nevertheless, most of these newly created brokers lack the regulatory requirements to offer their services in the UK and may not be eligible for the client’s deposit protection provided by the CySec and the FCA. These are the brokers that you will most certainly find on the AMF black list and the multiple warnings released by the FCA. Moreover, white label brokers lack flexibility when it comes to improve their features as they end up being completely dependent on the solution provider.
Always prefer brokers with proprietary solutions
We can only recommend you to prefer traditional brokers with proprietary platforms, solid track record and all the required regulatory approvals. For your information, OptionTime, 24Option, TopOption and AnyOption all meet the above criteria and are among the most respected brokers on the market. We highly recommend that you only deposit with regulated binary options brokers (CySec and FCA) that you find listed on our site. This will secure safe payouts and should you face any difficulties we can assist you.