Why partnering as an Introducing Broker can be beneficial for your business?

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Introducing broker

If you’re in the business of marketing and selling financial products, partnering as an Introducing Broker can be a great way to extend your reach and grow your business. As an Introducing Broker, you’ll be able to offer your clients access to a wider range of products and services, while still maintaining control over the relationship.

What is an Introducing Broker?

Introducing Brokers are the bridge between forex traders and the broker. They have a direct relationship with their customer base, but they are able to offer all of the benefits of working directly with a Forex Broker!

Introducing brokers are focused on customer relation and customer support, many times being the liaison between the trader and the broker.

What are the roles of an Introducing Broker? (Forex IB)

The Introducing Broker’s can have different roles depending on how involved they want to be on the trading adventure of their client base. If they want a more active and involved role, Forex IB’s can educate and maintain their trader base informed about forex and financial market news. They can give platform trainings, do live trading sessions, and give weekly or monthly market updates with the goal in mind of making it easier for their traders to have a profitable trading journey.

If you as an Introducing Broker want to take on a more passive and less involved role you can just suggest a forex broker to your clients. That way you make sure your clients are in the right hands without having to get involved in any of the Forex Training and market analysis.

Who can be an Introducing Broker?

Many newbies to the foreign exchange market don’t know what introducing brokers do. They’re not blameless though because most descriptions of this topic only feature basic information about how futures and forex trading works and why you would want one as your partner when it comes time for serious money moves in London, Zurich, Hong Kong or Frankfurt. 

It is also quite complex as there are differences between Introducing Brokers for an International online forex broker and Introducing Brokers for a large bank or classical financial brokerage. For classic brokerages, the IB has a more technical role, but for Online brokers such as IMGFX, IBs take on a more customer support and educational role.

  1. Becoming an IB If you have a financial website: If you own a website where you post financial news, or market analysis, becoming an IB is the best way for you to monetize that traffic.
  2. You are a financial influencer on social media: Trading Forex is no easy task, and many users follow accounts for suggestions, trading signals or overall education on market trends. If you run a forex or crypto Instagram or Facebook group you will want your followers to trade with a reliable broker. Becoming an IB for IMGFX is the best way to make sure your followers are in the right hands!
  3. You own a forex YouTube account: Market analysis takes a long time, and many traders do not have the time to make weekly analyses of the forex market. If you are an experienced trader and own a YouTube account where you help traders with forex analysis or market news using IMGFX as your trusted platform is the perfect way to add to your monthly revenue.
  4. If you offer Trading Signals on Telegram or Whatsapp: Trading signals are useful for traders to get secondary inputs and opinions on when to enter a trade. These signals can be useful to identify trends and profit from these movements. For your followers and clients to enter quickly in the market and profit as much as possible from these signals you need a broker partner that will place the trades quickly. IMGFX is the perfect broker to use.

For this reason, IBs are often the best way to get introduced into an industry without risking too much money. They can help beginners learn about what it takes and give them a chance at experiencing all that trading has in store for experienced professionals, like yourself.

How do Introducing Brokers make money?

There are different ways how introducing brokers make money, it mostly depends on what market the IB is focusing on. IBs make money based on the commission charged by the broker for every successful trade made by clients. Introducing brokers receive a portion of that trade placed through the Forex Broker.

The Benefits of becoming an IB

1. Commissions. How much do Introducing Brokers make?

Some brokers pay up to 60%-70% of the spread, called pip that is charged to the traders. The good thing about this is that if IBs have an ever-growing base of traders under them, their revenue will also keep growing. IBs can make as much as they want, some Introducing Brokers are a one-man show, but some others are large corporations that know how to train and educate their traders so that their portfolio and accounts also keep growing.

If IBs manage to offer great customer service, they will also be able to create a good relationship with their traders, making it a win-win situation for all. For example, if you refer 100 forex traders to IMGFX and the spread charged to the trader is 10 pips = $10 you would be making $6.000-$7.000 a month.

If you grow the list of traders you referred to IMGFX to 1000, then you would be making 10 times as much, $60.000 a month!

2. Volume-Based Rebates

Introducing Brokers are paid every time a client makes an exchange. Some of these professionals will offer you back some coins for each trade made with them, which is called “rewards” or rebate programs in this industry.

By nature, the foreign exchange market has a high trade frequency per trader such that even nominal rebates easily add up at end of the month. For this reason, if you trade larger volumes then it will be easy for yourself to negotiate higher rates on your rebate as either way – tighten spread or preserve capital – these are free funds received with every deal.

Benefits of having an Introducing Broker when opening a live account with a Broker

1. Value Added Services

IBs are the lifeblood of any brokerage firm. Without them, many traders would be left in an unorganized mess with no way to find their next million! That is why most offer other services for free including advanced chart trading software or advanced tracking which can help you succeed if used correctly – but just remember that newbies should do some research before accepting these offers since not all value-added features may apply depending on your needs as well how experienced/technical someone might already seem at trading stocks by different methods.

IBs are often seen as a middle man in the foreign exchange market, but they’re not supposed to interfere with your trade or hold onto customer funds. This means that if you use an introducing broker then there is more potential for success on trades outside of Europe.

2. One more layer of dedicated support and Forex Education

Starting your forex trading journey can be tricky and confusing. Forex brokers are just the platform you use to place trades onto our liquidity provider and enter the market. IMGFX does offer 24/7 support, but we are not a trading school.

Forex IB’s can be very useful to cover that role, technical terms such as Bid Size, Leverage etc can be explained by your IB, making your trading easier and more manageable at the beginning.

Qualities of Online Broker that IBs should look for

IBs are local businesses that provide better customer service due to their proximity. They also have a special knack for knowing exactly what each client needs, making them stand out in comparison with larger firms which may not be as personalized or able when faced with such requests from numerous clients on an everyday basis.

With as many brokers as there are, it is important to have some things in mind when deciding which will benefit from your network.

Adaptable commission structures that can be tailored to the Introducing Broker’s business strategy and satisfy both his immediate and long-term objectives.

A broker with good customer support. It is extremely important the communication with the broker is fast and reliable! You will be the one getting in contact with it for any doubt, issue or admin task you might need.

Flexible payout options. When it comes to getting your commissions, a fast and reliable broker is of utmost importance. Can you get paid monthly or weekly? Also, how will your commissions be transferred to you? In this day and age, crypto transfers are the fastest, we offer that at IMGFX!

The sky’s the limit when it comes to business success with personalized dedicated support, customizable reporting, advanced trading tools, and expert affiliate marketing advice from IB professionals.

If you wish to invest in the forex market, you can open a live account with us. Alternatively, practise trading forex in a risk-free environment with a demo account.

If you want to try our FX platform before becoming an IB, go ahead and open a live FX account first!

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