Forex Introducing Brokers

Forex introducing brokers, also commonly referred to as Forex IBs, are individual business entities that recommend clients to Forex firms for a commission or rebate. Anyone can sign up to become an introducing broker and create a profitable new revenue stream, however individuals or companies that already have an established client base within the investment sector are most likely to be successful as a Forex IB. In essence, the job of a Forex introducing broker is to operate a Forex referral business, receiving set percentage commissions from Forex brokers, signal providers, and trading platforms. The following paragraphs describe the benefits of becoming a Forex introducing broker, as well as what to look for when signing up, and what the most ideal business models are for expanding into the Forex IB market.

What is Required to Become a Forex Introducing Broker?
Fortunately, signing up to become a Forex introducing broker is as simple as filling out a simple form and submitting it to a Forex services provider that is currently accepting IB applications. The application will require basic information about your business, your existing client base, and details about any websites or marketing avenues that you currently use to promote Forex services (if applicable). Businesses that already have clients within the financial sector are most likely to be successful Forex introducing brokers. An example of such companies or business entities would be money managers, advertising firms, hedge funds, real estate/mortgage firms, financial advisors and planners, and insurance companies/brokers.

What to Look for When Signing up As a Forex Introducing Broker
The first attribute that should be considered when examining prospective Forex firms to sign up with should be the payout amounts. Look for firms that offer tight spreads and expeditious compensation scheduling for faster payouts and simplified accounting. It is also important to look for a firm that offers straight-through-processing (STP) capabilities, which will allow your clients to deal directly with liquidity providers to avoid dealer delays, re-quotes, and price manipulation, all of which decrease profitability. Ensuring the safety of the Forex firm’s trading platform is imperative, so it is best to look for firms that utilize industry-standard platforms like MetaTrader 4, which is currently the most popular trading platform. Aside from the safety of the firm’s platform, it is also essential to deal with reputable companies that maintain the utmost security in relation to client account funds, as this can have a direct impact on the reputability of your business. Other attributes to look for are free IB training, and a lenient rate of approval for new clients (which allows you to refer more clients and earn more commissions).

What Benefits Do Forex Introducing Brokers Receive?
Businesses that choose to become Forex introducing brokers receive plethora of benefits, including the ability to give their clients access to powerful Forex trading platforms. Forex introducing brokers are compensated based on the amount of trades made by their clients, so becoming an IB offers the opportunity to create a residual income stream that continually expands each month, rather than forcing the business owner to solicit new clients to receive more commissions. As a Forex IB it is also possible to expand your investment operations into the foreign exchange market, which is creating hundreds of new millionaires each year. Forex introducing brokers also receive access to free Forex training, as firms provide these services to IBs so that they can provide efficient training to their clients and maximize trade volume. In essence, Forex introducing brokers gain many of the same benefits enjoyed by Forex firms, without the hassle of dealing with time-consuming backend platform management and customer support.

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