Introducing Broker Forex — in an industry where there is literally a sea of online brokers and dealers competing for your business, is it really worth using an IB?
It's a valid question, but it should be remembered that working with an IB instead of directly going to an online broker could make the difference between making thousands of dollars and making nothing at all.
Aside from the perks, various trading bonuses and rebates on offer to attract your business, what other benefits do IBs provide?
Let's say you're a high roller, you're doing 2 billion dollars worth of trading volume per month. You can believe that your brokerage will go out of their way to deal with you and go out of their way to make you happy. They'll make sure you get the best execution possible, they'll make sure your questions are answered. You're going to be getting very good services when you are dealing in high amounts of volume.
But most traders are not at that level. Most traders trade between 50 and 100 lots a month. And with an Introducing Broker Forex, you ensure you get treated to the same level of customer service. With most dealing firms you can call and get support directly (at least in theory), but oftentimes you can't get through to a person who can really answer your questions — especially with trades that don't get executed properly.
But if you instead go through your IB, and they have a high volume of traders working with the dealing firm you have an account with, they are able to pick up the phone call the right person to answer your questions directly. In many instances, they can get the issue resolved and even get credited your money back after a bad execution.
Basically what happens is that IBs — who have a lot more clout with a dealing firm — will go to bat for you. They can take care of your customer service needs in a way that you just wouldn't get if you called up the brokerage directly.
Dealing firms are more worried about losing the business of an IB who brings a large amount of trading volume to that firm than they are about losing the business of an individual trader. So by utilizing the clout of an IB, you are more likely to receive the customer service you deserve.
Introducing Brokers Forex are an invaluable resource, especially for traders who don’t have hundreds of thousands of dollars to trade in the market. So by using an IB, you are going to benefit substantially.