Introducing broker programs are one of the fastest growing fields of Forex. With high speed Internet now the norm in many households it’s never been easier to get involved in Forex, be it as a trader, introducing broker or a number of other careers. For those of you who don’t know what an introducing broker is, we have one on hand to field your questions.
What is an introducing broker?
An introducing broker personally manages the careers of a roster of Forex traders. They differ from brokerages in that they provide a more personalized service and delegate orders to a Futures Commissions Merchant. Introducing brokers earn rebates on their client’s trades, so much of their time is spent searching out potential traders and recruiting them.
Why do people choose introducing brokers?
People choose to trade via introducing brokers for a number of reasons. Firstly the introducing broker is often the one who convinced them to become a Forex trader in the first place, so the choice of broker is obvious.
Many traders prefer to work via one friendly face rather than a large faceless brokerage; they also appreciate the suggestions and training their IB provides. For example many new traders find the software they need for training difficult to use; an IB will have more time to explain the systems involved and can show them personally how it all works.
What are some advantages of working as an introducing broker?
An introducing broker is in a unique position to develop quality Forex contacts and capital should they choose to pursue a career as a trader later on. The other advantage is that you can easily do it from home alongside another career. You choose your own hours and your own priorities. Many introducing brokers like their job because it plays to their strengths such as networking and sales skills.