An Introducing Broker (IB) is a broker who handles the execution and settlement of orders that the introducing firm receives from its clients or their trading desk. The IB, drivers business to the clearing firm and provides additional customer support for both the client and the dealer.
The Introducing Broker, who earns a commission on the transaction, usually pays a fee for each trade and interest on margin loans the clearing firms make to the clients it introduced.
On the other hand, the clearing firm gets payments and securities from the clients and handles record keeping. An IB in commodities markets is an intermediary who takes orders for futures contracts but passes on.
Become a Forex Introducing Broker is a great opportunity to get involved in a growing industry, The Forex Industry is a great business where you can be financially independent, you can develop your skills and build a solid career in Forex.
There are many opportunities to build a career within the market; IB’s obtain lots of benefits that can represent a large income, you can also expand your business building a large network of clients.
Remember, if you are a register IB, you must be member of NFA (Natural Futures Association) in order to conduct business with the public. Also, as an IB you must file a completed inline Form 7-R, a Compliance Requirements for Applicants, a non-refundable application fee of $200.00 and an IB Membership Dues of $750.00.
In addition, all registered IBs are required to file the Principals and Associated Persons and if you are IB engaged in retail off-exchange Forex activities, you are required to fill up some others requirements to be able to perform your activities.
As an Introducing Broker, your goals within the business will grow every day; you will get involved in a competitive program, where the more clients you refer, the greater your income potential will be it’s such a flexible job where you can develop your skills and manage your own time while making money.