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BASICS
HOW TO LAUNCH A WHITE LABEL TRADING PLATFORM?
Decide on the type of platform
A trading or trading platform is software that allows you to buy and sell various assets in financial markets. Such assets can be fiat currencies, cryptocurrencies, securities, precious stones and metals, commodity assets, insurance policies, NFT, access to something, etc.
When creating a white label to launch a trading platform, you need to decide:
What exactly can be traded on your platform. Usually by this criterion, platforms are divided into traditional (Forex, securities, commodities, precious metals and stones) and cryptocurrency (Bitcoin, Ether, Lightcoin).
How exactly will the trading happen on your platform. You can create a white label to run market makers, STP or ECN brokers. If your focus is on cryptocurrency, you can also think about developing a white label to launch decentralized exchanges.
On what platforms your software will run. This can be a desktop program, a web interface or an application for Android and iOS. Of course, the more platforms your white label will support, the better, as it increases the reach of your potential target audience.
How to monetize your white label solution. It's about how you will sell it: one-time payment, subscriptions, transaction fees, selling premium features. And how your licensees will earn: subscriptions, commissions, advertising, paid features, tips, tokens, or services.
Understand your customer's target audience
In the next step, you'll need to conduct market research to understand what your potential customers and their target audience need. If you have the appropriate knowledge and skills, you can do this analysis yourself. If not, you can outsource this task to a marketing agency or full-service development company like Merehead.
Here's how you can find out what your customers and their CA need:
Open Data Analysis. This involves looking at the results of surveys, market research, and statistics that someone else has done and posted publicly, such as on the Statista website.
Conducting surveys, focus groups. If you know exactly who your target audience is, you can ask them directly what they expect from your trading platform, what they don't like about existing solutions, what would make them use your software, etc.
Use user personas. This is a generalized but realistic description of a typical product user, that is, an archetype, rather than a real live person. The persona includes demographics, habits, fears, desires, goals, etc., which professional marketers and developers can use to create a product that will appeal to the target audience. Use this tool when creating a white label trading platform.
Decide on the functionality of the trading platform
White label functionality can be divided into two distinct groups. The first is the features that will allow your clients to launch and manage a trading platform. The second is the features through which end users will buy and sell financial assets using your software.
Here's what you need to run trading platforms:
A trading engine. This is the backbone of any trading platform. The trading engine gathers all the data into one mechanism in order to match orders and make asset purchases and sales. In order to do that you need to implement an order book, a matching system, integration with payment gateways and a liquidity pool (your own or connect to someone else's).
User interface. These are all the functions aimed at the target audience of your customers. For example, registration, login, profile setup, bank card connection, buy/sell assets, push notifications, internal chat, pamm accounts, affiliate program, etc.
Customization and personalization. Your customers should have the ability to brand your white label solution, that is, change the white label to their brand label. In addition, licensees also need the ability to choose the user interface features they want. These are usually divided into basic ones, which come in one package by default, and additional ones, which can be connected separately for an additional fee.
Security system. You need to make sure that your licensee and end users do not have to worry about any security threats. To do this, you need to research in advance all the types of security threats that will be associated with the use of your software, and develop mechanisms to level them out at the software level.
Payment system. This functionality is responsible for monetizing your white label solution for you and your licensees, setting up monetization, accepting payments, and end-user I/O.
Integrations. When you create a white label for launching trading platforms, you should think about what additional services your licensees might need and implement the ability to connect them quickly and easily. For example, it could be payment gateways, liquidity pools, marketing tools, crypto wallets, etc.
Support. You must also create a support system through which your target audience of licensees can contact them in case of problems. This also involves training your licensee's staff on how to troubleshoot possible problems.
Here's the functionality for end users:
Registration, Login. This functionality should be as simple and, most importantly, secure as possible. You should offer several options, such as registering via social media, phone number, or email. You can also add authorization via fingerprints and Face-ID.
Identity verification. In today's white label to run trading platforms, there should be tools to verify the identity of end users: first and last name, bank card, address and phone.
User page. It is required for personalization and management of personal data, deposits, wallets, bank cards, as well as communication with the administration and other users of the platform.
The interface of the trading engine. These are all functions that are responsible for listing and searching for trading pairs, placing trades, matching, etc. This function is a key for trading platforms - pay the most attention to it when creating your own white label software.
Deposit, payments. In addition to end-user deposits and withdrawals, this function is also responsible for transaction tracking. It should also be possible to view the history of transactions and filter them by date, size, commission, and type of transfer.
Charts, quotes. Users should be able to see all the updates of the quotes in the real-time mode from the listings and charts.
Trader's portfolio. Traders should be able to track their positions in real time and filter them according to key criteria.
News feed. This feature notifies users about trading industry news, exchange rates, and other things, allowing traders to stay informed about current events and react to them quickly.
Notifications. This is the best way to keep in touch with the user, letting him know about important events, deal results, and more.
Reports, analytics. Traders will appreciate the ability to see statistics and analyze the results of their trades. A good solution is to offer them different types of charts and reports.
Decide how to secure your platform
One of the main problems of trading is security. And this problem is especially acute in the field of cryptocurrencies, where every year there are major thefts of traders' money from deposits on the exchange. For example, in 2014 the Mt. Gox exchange was hacked, allowing hackers to steal $450 million, in 2016 Bitfinex - $65 million, in 2019 Binance - $40.5 million. The Bithumb exchange was hacked three times: in 2017, 2018 and 2019, causing the trading platform to lose $58 million.
Here's what you can do to secure your white label:
On the licensee side. The best protection today is blockchain technology, through which you can distribute your security to your users. And the more there are, the more secure the system will be.
On the traders' side. Here you can implement two-factor authentication with Authy and Google Authenticator. Track IP addresses when registering and logging in, and require user confirmation when a new IP is detected. In addition, you need to protect data with cryptography and SSL, as well as mechanisms to protect against phishing, DDos, XSS, CSRF attacks and spoofing end-users' "SIM cards".
In addition, your security system must also imply compliance with KYC / AML procedures, standards for protecting personal data.
A trading or trading platform is software that allows you to buy and sell various assets in financial markets. Such assets can be fiat currencies, cryptocurrencies, securities, precious stones and metals, commodity assets, insurance policies, NFT, access to something, etc.
When creating a white label to launch a trading platform, you need to decide:
What exactly can be traded on your platform. Usually by this criterion, platforms are divided into traditional (Forex, securities, commodities, precious metals and stones) and cryptocurrency (Bitcoin, Ether, Lightcoin).
How exactly will the trading happen on your platform. You can create a white label to run market makers, STP or ECN brokers. If your focus is on cryptocurrency, you can also think about developing a white label to launch decentralized exchanges.
On what platforms your software will run. This can be a desktop program, a web interface or an application for Android and iOS. Of course, the more platforms your white label will support, the better, as it increases the reach of your potential target audience.
How to monetize your white label solution. It's about how you will sell it: one-time payment, subscriptions, transaction fees, selling premium features. And how your licensees will earn: subscriptions, commissions, advertising, paid features, tips, tokens, or services.
Understand your customer's target audience
In the next step, you'll need to conduct market research to understand what your potential customers and their target audience need. If you have the appropriate knowledge and skills, you can do this analysis yourself. If not, you can outsource this task to a marketing agency or full-service development company like Merehead.
Here's how you can find out what your customers and their CA need:
Open Data Analysis. This involves looking at the results of surveys, market research, and statistics that someone else has done and posted publicly, such as on the Statista website.
Conducting surveys, focus groups. If you know exactly who your target audience is, you can ask them directly what they expect from your trading platform, what they don't like about existing solutions, what would make them use your software, etc.
Use user personas. This is a generalized but realistic description of a typical product user, that is, an archetype, rather than a real live person. The persona includes demographics, habits, fears, desires, goals, etc., which professional marketers and developers can use to create a product that will appeal to the target audience. Use this tool when creating a white label trading platform.
Decide on the functionality of the trading platform
White label functionality can be divided into two distinct groups. The first is the features that will allow your clients to launch and manage a trading platform. The second is the features through which end users will buy and sell financial assets using your software.
Here's what you need to run trading platforms:
A trading engine. This is the backbone of any trading platform. The trading engine gathers all the data into one mechanism in order to match orders and make asset purchases and sales. In order to do that you need to implement an order book, a matching system, integration with payment gateways and a liquidity pool (your own or connect to someone else's).
User interface. These are all the functions aimed at the target audience of your customers. For example, registration, login, profile setup, bank card connection, buy/sell assets, push notifications, internal chat, pamm accounts, affiliate program, etc.
Customization and personalization. Your customers should have the ability to brand your white label solution, that is, change the white label to their brand label. In addition, licensees also need the ability to choose the user interface features they want. These are usually divided into basic ones, which come in one package by default, and additional ones, which can be connected separately for an additional fee.
Security system. You need to make sure that your licensee and end users do not have to worry about any security threats. To do this, you need to research in advance all the types of security threats that will be associated with the use of your software, and develop mechanisms to level them out at the software level.
Payment system. This functionality is responsible for monetizing your white label solution for you and your licensees, setting up monetization, accepting payments, and end-user I/O.
Integrations. When you create a white label for launching trading platforms, you should think about what additional services your licensees might need and implement the ability to connect them quickly and easily. For example, it could be payment gateways, liquidity pools, marketing tools, crypto wallets, etc.
Support. You must also create a support system through which your target audience of licensees can contact them in case of problems. This also involves training your licensee's staff on how to troubleshoot possible problems.
Here's the functionality for end users:
Registration, Login. This functionality should be as simple and, most importantly, secure as possible. You should offer several options, such as registering via social media, phone number, or email. You can also add authorization via fingerprints and Face-ID.
Identity verification. In today's white label to run trading platforms, there should be tools to verify the identity of end users: first and last name, bank card, address and phone.
User page. It is required for personalization and management of personal data, deposits, wallets, bank cards, as well as communication with the administration and other users of the platform.
The interface of the trading engine. These are all functions that are responsible for listing and searching for trading pairs, placing trades, matching, etc. This function is a key for trading platforms - pay the most attention to it when creating your own white label software.
Deposit, payments. In addition to end-user deposits and withdrawals, this function is also responsible for transaction tracking. It should also be possible to view the history of transactions and filter them by date, size, commission, and type of transfer.
Charts, quotes. Users should be able to see all the updates of the quotes in the real-time mode from the listings and charts.
Trader's portfolio. Traders should be able to track their positions in real time and filter them according to key criteria.
News feed. This feature notifies users about trading industry news, exchange rates, and other things, allowing traders to stay informed about current events and react to them quickly.
Notifications. This is the best way to keep in touch with the user, letting him know about important events, deal results, and more.
Reports, analytics. Traders will appreciate the ability to see statistics and analyze the results of their trades. A good solution is to offer them different types of charts and reports.
Decide how to secure your platform
One of the main problems of trading is security. And this problem is especially acute in the field of cryptocurrencies, where every year there are major thefts of traders' money from deposits on the exchange. For example, in 2014 the Mt. Gox exchange was hacked, allowing hackers to steal $450 million, in 2016 Bitfinex - $65 million, in 2019 Binance - $40.5 million. The Bithumb exchange was hacked three times: in 2017, 2018 and 2019, causing the trading platform to lose $58 million.
Here's what you can do to secure your white label:
On the licensee side. The best protection today is blockchain technology, through which you can distribute your security to your users. And the more there are, the more secure the system will be.
On the traders' side. Here you can implement two-factor authentication with Authy and Google Authenticator. Track IP addresses when registering and logging in, and require user confirmation when a new IP is detected. In addition, you need to protect data with cryptography and SSL, as well as mechanisms to protect against phishing, DDos, XSS, CSRF attacks and spoofing end-users' "SIM cards".
In addition, your security system must also imply compliance with KYC / AML procedures, standards for protecting personal data.