Forex IB programs benefit both brokers and traders. The Forex IB is very much a product of the modern epoch. When Forex made the switch to fully online, digital trading one of the many changes that accompanied the transition was a massive influx of new traders facilitated by the relative ease of use of digital trading systems. Modern Forex trading systems allow traders to work from home and to perform tasks that would have taken days in just a few hours.
The need for a Forex IB springs from two factors of this development, firstly many potential traders are simply unaware how accessible Forex trading has become, and secondly because new traders need someone to explain the basics of trading Forex and the software they will use. A Forex IB looks for new recruits and explains to them the profitability and ease of trading Forex. As such an introducing broker will usually be someone with access to potential traders, e.g. people who work in the finance industry, investors or people with a keen interest in politics and finance.
Brokers love Forex IBs because they bring in a lot of new clients and because they raise the overall standard of trading within the organization. As such IBs are well rewarded for their efforts, earning rebates on all of their clients’ trades. This means that introducing brokers are highly motivated to do a good job and just a handful of talented IBs can spur great growth within an organization.
For this reason many online brokers pursue the best IBs with lucrative white labels. A white label means that a Forex IB works for one broker exclusively. The introducing broker benefits from full endorsement from the brokerage and access to their branding and their assets such as advance computer software, technical expertise, high quality contacts and customer service features.