The main forex business models are: introducing broker (refer clients to a broker for commission), white label brokerage (your own brand on a provider's trading technology, with your own licence or a partner's), fully licensed broker (your own licence, technology stack and risk management), prop trading firm (sell evaluations and fund successful traders) and technology or education company. They differ in licence needs, capital, risk, control and time to launch. Many founders start as an IB or prop firm and later move to their own licensed brokerage.
- An IB needs the least capital and control; a licensed broker needs the most.
- A white label speeds up a brokerage launch but does not replace a licence.
- Prop firms avoid holding client deposits but carry payout and reputation risk.
- Technology and education businesses avoid many broker rules but still face marketing laws.
- Choose by target market rules first, then by budget and ambition.
Looking for a turnkey brokerage? Platform, liquidity, CRM and payments in one package when you are ready for your own brand.
"Should I start a brokerage, a prop firm or just become an IB?" is one of the first questions founders ask. The answer depends on your market, budget, experience and how much control you want. This comparison sets out the trade-offs.
The five models at a glance
| Model | Licence | Capital needed | Control | Time to launch |
|---|---|---|---|---|
| Introducing broker (IB) | Sometimes registration or appointment | Low | Low | Fast |
| White label brokerage | Your own licence or a partner's, depending on the structure | Medium | Medium to high | Weeks for technology, longer for licence |
| Fully licensed broker | Yes, in each jurisdiction | High | Full | Months |
| Prop trading firm | Usually no broker licence, but legal advice needed | Medium | High | Weeks |
| Technology or education company | Usually no financial licence | Low to medium | Full over your product | Fast |
1. Introducing broker
You refer clients to a licensed broker and earn commissions. It is the lowest-cost way to start, but you depend on the broker's terms and brand. Read how to become an IB.
2. White label brokerage
You run your own brand on a provider's trading technology, such as an MT5 white label, with liquidity and a CRM. It is much faster and cheaper than building a full stack. Important: a technology white label does not give you a licence. You either hold your own licence or operate under a structure your lawyers approve. See MT5 white label vs full licence.
3. Fully licensed broker
You hold your own licence, choose your execution model, manage risk and own every client relationship. It needs the most capital, people and compliance work. Licence options range from offshore centres to top-tier regulators; compare them in our licence cost comparison and how to start a forex brokerage.
4. Prop trading firm
You sell trading evaluations and fund traders who pass. You do not take client deposits in the same way as a broker, but you need clear rules, strong risk and fraud controls, reliable payouts and legal advice on your model. Read how prop firms make money and how to start a prop trading firm.
5. Technology or education company
You sell software, signals, courses or tools rather than brokerage services. Financial licences are often not needed, but advertising, consumer protection and advice rules may still apply.
How to choose
| If you… | Consider |
|---|---|
| Have an audience but little capital | IB, then a white label later |
| Have capital and want your own brand quickly | White label brokerage with a suitable licence |
| Want full control and institutional credibility | Fully licensed broker |
| Target traders in restricted countries | Prop firm, IB or education model, with local legal advice |
| Are a developer or analyst | Technology or education company |
Common upgrade path
- Start as an IB or prop firm to build an audience.
- Add your own CRM and branded portal.
- Launch a white label brokerage with a licence that fits your clients.
- Move to your own platform licence and multi-platform set-up as you grow.
How we help
We provide technology for every step: IB portals, prop firm CRM, MT5 white label, turnkey brokerage and multi-platform solutions.
General information reviewed November 2026, not legal, tax or investment advice. Rules differ by country; confirm your model with qualified local counsel. MetaTrader is a trademark of MetaQuotes Ltd.