What is a grey label, and why is it risky for a prop firm?

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A grey label is when a company uses a trading platform under another company's licence, typically a broker sharing its MetaTrader server with a prop firm, rather than holding its own white label. It is cheaper and faster, but the prop firm depends entirely on the licence holder, who can withdraw access at any time.
Why grey labels became a problem:
The prop firm has no direct contract with the platform maker.
If the platform maker objects, the broker must cut off the prop firm.
In 2024, several prop firms lost MetaTrader access overnight this way.
How to reduce the risk:
Prefer a direct licence or a platform you contract with directly.
Check whether prop use is explicitly permitted.
Make sure you can export your traders' account data.
A purpose-built prop platform sold directly to the firm avoids the middle layer entirely. With PropExecutor your firm buys the plan directly and the platform has no third-party terminal licence behind it.
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Ask any provider directly whether the platform licence is in your firm's name or shared through another company. If it is shared, ask what happens to your accounts if that company's licence or relationship ends.

What is a grey label, and why is it risky for a prop firm?

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