How many of us have aspired to become Forex traders only to discover our early trades don’t work out the way we wanted? Does this mean we have give up our dreams of making big bucks from the Forex? Not at all, you can still have your slice of the Forex pie if you’ve got what it takes to be an introducing broker. But what are introducing brokers?
Introducing brokers are client oriented organizations who receive orders for Forex trades. The difference between introducing brokers and other broker\dealers is that an introducing broker does not actually make trades, instead they delegate the physical transaction to a future commissions merchant.
The idea of this delegation is that introducing brokers can dedicate more energy to the needs of their clients as their workload is essentially cut in two.
Introducing brokers emphasize client service and to become an introducing broker all you have to do is know people who want to make trades.
An introducing broker makes rebates on every transaction that a client makes. The goal of the introducing broker then is to find as many clients as possible in order to increase their rebates. People who social, well connected and good at networking often make good introducing brokers.
Another benefit of being an introducing broker is it gives a would-be trader time to get to grips with the intricacies of the Forex without risking their personal capital. While these traders may have initially rushed into their early trades and made a loss, when they re-emerge after a stint as an introducing broker they have better Forex strategies prepared as well as a wealth of useful Forex contacts.
In a sense working as an introducing broker and a Forex trader is very similar, both rely on networking to secure valuable information and capital, as such a career in one will compliment the other, so grab a phone and get started today.