Newcomers to Forex are often confused about what an Introducing Broker is and what benefits they might offer the trader. This is because most cursory explanations of Forex don’t include descriptions of more advanced elements such as Introducing Brokers, Futures, etc. For this reason the value of the Introducing Broker is sometimes diminished or invisible for new traders. This is ironic because for newcomers especially, Introducing Brokers have important contributions to make.
First of all Introducing Brokers can offer access to valuable contacts. The job of the Introducing Broker is to collect Forex contacts; the trade itself is delegated to a Future Commissions Merchant. Allying yourself with a reputable Introducing Broker will instantly boost your credibility across the board in Forex.
An Introducing Broker is also a valuable source of information about Forex. Many Introducing Brokers have operated in Forex for many years and understand a great deal about the intricacies of the market. Of course Introducing Brokers share this information with their clients, after all their job is to improve their client’s trades.
Another reason Introducing Brokers have such large reserves of valuable information is the vast number of Forex contacts they acquire, this kind of access to privileged information is what will make your trades successful consistently and for a long period of time.
New traders derive a great deal of benefit from the rebate schemes that most Introducing Brokers offer. Typically an Introducing Broker offers rebates on every transaction that a trader makes, thus favoring large numbers of small transactions – the typical style of a new trader.
The benefit of hiring an Introducing Broker really comes down to customer service. Compared to regular trader/dealers, Introducing Brokers are completely customer oriented. Ultimately any trader can stand to benefit from a relationship with an Introducing Broker, especially a new trader.