For many traders an introducing broker forex is an invaluable tool. They offer experience and insight into the market, as well as advanced trading software and other resources intended to increase the prosperity of their clients.
Some traders are skeptical about the purpose of introducing broker forex. Here are some common myths you might have heard about introducing broker forex, which need some debunking.
Perhaps the biggest misconception is the idea that the introducing broker forex is an unnecessary middleman looking to charge high commissions. An introducing broker does not necessarily charge fees higher than any other kind of broker or dealer.
The relationship between the introducing broker forex and the forex brokerage is a full partnership. Their goal is to provide two halves of one complete service. This split means that both parties are better able to service their clients.
Rather than simply ‘introducing’ the client to the broker, the introducing broker forex provides their clients with a range of services.
Another myth about the introducing broker forex is that due to their need to partner with a brokerage house in order to trade, they are slower or less efficient than dealing directly with the broker. This is simply not the case, and dealing with an introducing broker in the forex market has no bearing either positive or negative on the speed of your trade execution.
The introducing broker forex only deals with the client service, not trade execution. Due to their necessarily close relationship, introducing brokers and brokerage firms have streamlined their communications so that an order placed by an introducing broker will be carried out no slower than an order placed directly with the broker.
One of the reasons for criticisms of introducing broker forex is that the services they offer tend to be more advantageous to less established traders. For this reason, it is usually the more established traders who claim that introducing brokers are unnecessary and are often the ones most responsible for the proliferation of myths about the introducing brokers .
The reality is that all traders, from novice to seasoned traders, can take advantage of these services, such as trading software, rebates, and the opportunity to join with others to get a better deal. The challenge is finding which introducing broker forex is right for you.