Forex IB priorities are to grow their partners’ brokerages and to see that the traders they recruit become successful and financially prosperous. They can also learn a lot and earn well along the way. As such a Forex IB partnership is a profitable alliance for all concerned, but only if the IB has got what it takes.
What is a Forex IB?
A Forex introducing broker is someone who understands at least the basics of Forex and who recruits traders for one or more brokerages. The introducing broker doesn’t necessarily trade Forex; rather he explains the benefits of trading to others who are well suited for this career.
Many new traders are first introduced to the idea of trading by a Forex IB and as a result are often keen to continue that working relationship. Forex IBs help new clients to master the software involved in trading, enabling them to gradually unlock their potential as traders. In addition a good introducing broker makes further introductions between their clients and a host of valuable Forex contacts. Any experienced Forex contact can be a good source of information or analysis that helps to form successful trades.
Some IBs work exclusively for just one brokerage; this is known as white labeling. White labeling allows brokers to maintain a close relationship with their most talented introducing brokers. In return the Forex IB can work under the official branding of a respected brokerage and this increases their ability to attract new clients. It also allows an IB to offer the advanced software and other services that only a large, technically advanced brokerage can boast.
The best Forex IBs are usually motivated professionals with access to financial industry contacts, for example bankers or Forex technologists. However good Forex traders can emerge from any background so a talented IB is often versatile, and seizes upon valuable opportunities wherever they find them.