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White label broker

A brokerage that operates under its own brand using another firm's technology, liquidity and sometimes its regulatory permissions.

Launching a retail brokerage from scratch is expensive, so many brands are white labels sitting on a larger provider's infrastructure. The client-facing name, website and support are local; the pricing, execution and risk management belong to the parent.

The arrangement is legitimate but affects who actually holds your money and who answers a complaint. The regulator's register will show whether the entity is authorised in its own right or acting as an appointed representative of someone else.

Example: a trader signs with a brand registered in one country but finds the terms name a different entity as the executing party and a third as the custodian of funds. Three balance sheets sit between the trader and the market.

Related: introducing-broker, counterparty-risk, offshore-broker, prime-of-prime

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