Introducing brokers occupy a unique niche in the world or Forex, not quite traders, not quite brokers, they are required to be flexible, knowledgeable and helpful 24/7. Working as a Forex IB is a great way for smart players to subsidize their income or even become financially independent; let’s ask one a few questions to get a better idea what it’s all about.
What do introducing brokers do exactly?
Introducing brokers concentrate on finding professionals who might be interested in trading Forex. An IB doesn’t make any trades; they refer the trades of others to a Future Commissions Merchant.
Why do some people prefer to work with introducing brokers?
Introducing brokers can afford to give their clients more attention than most big brokerages. New traders often need a lot of guidance and so they appreciate the extra care a good IB can give them. Introducing brokers are dedicated to the task of developing contacts so who better to help you meet other Forex traders?
What is the advantage of being an introducing broker?
Introducing brokers earn commissions on all the trades their clients make. This can quickly add up to a good income. Many IBs would like to trade forex in the future. By working as an introducing broker they can develop capital, contacts and knowledge of the inner workings of Forex. This way they can get their trading career off to a great start and avoid the learning curve that hinders other traders.
What is a white label introducing broker?
Introducing brokers with a white label agreement refer their clients to one Forex broker exclusively. The benefit of a white label is that the IB can operate under the company name and use their broker’s good reputation to get more clients. White labels also teach their IBs as well as providing them with high quality contacts.