In this article, we will examine what an introducing broker (IB) means, what it takes to become an IB and then most importantly, the advantages of becoming an IB. For a simple explanation, an introducing broker is a person or a business entity that works with the main forex broker and does the Job of bringing in new clients for the company. Make no mistake thinking that it’s a low profile job with a limited potential. To your surprise, 70% of the broker websites that you see online are only the introducing broker and each of the dedicated Introducing broker takes home over $50K a month minimum. Isn’t that worth exploring, let’s see.
All main brokers allow a provision for people to join with them under different kinds of partnership arrangements with the main one reading as introducing broker, an IB. Its free to sign up with any broker as an IB which usually starts with a simple application and undertaking to comply with their business ethics and discipline. After the approval of this application, the broker provides you its marketing and promotional material which you can also modify to suit your geographical area’s customer behavior. You are free to operate from home or launch a website or run a formal office instead where your main Job is to procure clients, help them with account opening procedures and then if possible, facilitate them with some value added services like free education, webinars and free forecasts. All this helps you to retain your clients on a long run, the core principle of any business.
You are compensated for your efforts when clients open their live accounts and begin their trading. As an introducing broker, you earn a percentage of the spread/commission charged to the client on each of the trades he makes, as long as he continues to trade. When you multiple this numbers of monthly trades with the number of clients you already have and the projected new clients sign ups, you will see that this business is nothing less than a goldmine that only gets bigger when you also develop your own affiliate chains to bring more of the new clients for you.
To add to this, there are numerous incentives announced by the brokers at regular intervals to multiply your profits manifold. There are also the contests for the best introducing broker wherein the highest business generating partner can earn not just the hefty prize amounts but also luxury cars and luxury cruise trips. Does that ring a bell for you? If not, then here’s to your astonishment that the broker will also allow you to manipulate the spreads as per your choice, with your of course being the legitimate owner of the extra spreads charged. That means that if you instruct the broker to charge four pips instead of one on any pair, then all your referred clients will be charged the same and these extra three pip will come to you in your IB account.
It might be worthwhile to explore this option while you continue your trading as sooner or later, you will realize that you need work and human interactions even with your successful and profitable trading. We always owe something to the people around us and somewhere we have to serve them irrespective of how much of money we have or we make. introducing broker business goes very well with educational workshops or trading training institutes where you can offer them free training on forex trading and help them open their accounts with your broker. You will be rewarded for your efforts when they start trading and the broker start paying you your commissions. Make sure that you also arrange them very good forecasts so that whatever may happen to the world, your traders make lots of money and they make money like hell.