Building a Forex Brokerage from Scratch: Grey Label vs Full Setup

Starting your own forex brokerage is a big opportunity in today’s fast-growing financial markets. With more people trading online every day, there’s room for new players to enter and grow — but success depends heavily on how you begin.

One of the most important decisions you’ll face is choosing between a grey label setup and a full brokerage setup.

Each model has its own benefits, risks, and requirements. In this blog, we’ll compare both options to help you decide which path fits your budget, goals, and long-term vision.

What Is a Grey Label Forex Brokerage?

A grey label brokerage is a low-cost, entry-level version of a white label. You operate under your own brand, but you don’t fully own or control the platform. Instead, you lease access to an MT4 or MT5 trading terminal from an existing licensed broker or technology provider.

You get:

A branded MT4/MT5 platform

Basic back-office access

A client dashboard and login portal

The ability to onboard and manage traders

Support from the main broker’s infrastructure

This model is popular with first-time forex business owners, educators, IBs, and regional agents who want to test the waters without spending a fortune.

What Is a Full Forex Brokerage Setup?

A full setup means creating your own independent forex brokerage. This includes:

Obtaining your own license or regulation

Purchasing a full MT4 or MT5 server license

Setting up liquidity connections

Hosting and securing your own trading infrastructure

Managing full operations including compliance, support, risk, and tech

This approach gives you complete control over your brand, spreads, leverage, features, and growth — but it comes with a much higher startup cost and complexity.

Key Differences Between Grey Label and Full Setup

Let’s break it down across some key areas:

1. Startup Cost

Grey Label: Usually starts around $3,000–$10,000.

Full Setup: Can cost $50,000–$500,000+ depending on licensing, servers, staffing, and infrastructure.

Verdict: Grey label is far more affordable and beginner-friendly.

2. Time to Launch

Grey Label: Launch in 1–2 weeks with provider support.

Full Setup: Takes 3–6 months (or more) due to licensing, setup, and testing.

Verdict: Grey label wins for faster go-to-market.

3. Platform Ownership

Grey Label: You lease the platform and rely on the main broker’s license and tech.

Full Setup: You own the MT4/MT5 license and can fully customize the backend.

Verdict: Full setup offers complete control but requires more responsibility.

4. Branding and Customization

Grey Label: Limited branding; basic customization options.

Full Setup: Full branding freedom, advanced features, and integrations.

Verdict: Full setup is ideal for unique or premium brands.

5. Legal and Regulatory Responsibility

Grey Label: Operates under the main broker’s license — less paperwork for you.

Full Setup: You must apply for your own forex license (e.g., in Seychelles, Labuan, or Cyprus).

Verdict: Grey label removes regulatory hassle, making it great for beginners.

6. Risk Management and Liquidity

Grey Label: Liquidity and risk control are managed by the parent broker.

Full Setup: You handle your own risk management tools, A-book/B-book setup, and liquidity partners.

Verdict: Full setup gives flexibility but requires knowledge and capital.

7. Revenue and Profit Margins

Grey Label: You share profits or receive fixed commissions.

Full Setup: All revenue is yours — from spreads, swaps, commissions, and volume.

Verdict: Full setup offers higher profit potential long term, but also higher costs.

8. Scalability

Grey Label: Good for small-scale or regional operations.

Full Setup: Scales globally with unlimited client and product options.

Verdict: Full setup supports bigger dreams — but demands more investment.

When to Choose a Grey Label Setup

You should consider a grey label forex brokerage if:

You’re just starting out in the forex business

Your capital is limited (under $10K)

You want to test the market before scaling

You already have a trading community, IB network, or audience

You want a low-risk way to enter the brokerage space

Grey label is perfect for entrepreneurs, educators, influencers, and IBs ready to take the next step — without going all in.

When to Choose a Full Setup

A full brokerage setup is better if:

You have significant capital and forex experience

You want to build a premium brand

You’re targeting regulated markets or licensing

You want to manage your own spreads, swaps, and execution

You’re aiming for long-term growth and institutional clients

This option suits advanced brokers, financial firms, fintech companies, and investors who want to build a scalable business with complete control.

Common Grey Label to Full Setup Path

Many successful brokers start with a grey label, grow their client base and income, and then upgrade to a white label or full setup once they’re profitable and confident.

This phased approach helps manage risk and build credibility before making larger investments.

Final Thoughts

Both grey label and full forex brokerage setups offer unique advantages. The right choice depends on your current goals, budget, and growth plan.

If you’re new to the industry or want to validate your idea quickly, grey label is the smartest, fastest, and lowest-risk entry point.

If you’re ready to scale globally and take full ownership of your operations, a full setup puts all the power (and responsibility) in your hands.

To launch your forex brokerage with a grey label or explore upgrade paths, visit OpenForexBroker.org.