The introducing broker, also known as IB, has a valuable and primary role to play in the world of investment, and the Forex market specifically. Mostly, a Forex IB is an individual that acts as a middleman between forex brokers and traders. Let’s elaborate what is a forex IB and how it facilitates the relation between both parties.
What is Forex IB?
An Introducing Broker (IB) is either an entity or an individual that acts as an intermediary between the broker and the trader. The IB connects the them with each other based on a direct partnership with the forex broker. Its main role is to refer new clients to this broker and gets a commission for it. Usually, the introducing broker provides its clients with required support, trading consultations, market education, as well as strategies and signals.
So, what does an IB do exactly? An introducing broker offers and advertises the trading services of the partnered forex broker. The IB partner gets access to the necessary support, software and services in order to entice potential clients. The success of an introducing broker depends on the number of registered clients and number of completed trades. The more of them, the more commission an IB gets paid.
Referred clients should register with the broker using a specific IB link to be recognized as IB’s traders. The introducing broker will start to earn commission once the referred clients deposit money and start trading. The IB’s commission will be based on the trading performance of the referred clients. The more, the merrier.
There is no fixed commission rate for the Introducing Broker (IB). The commission can keep growing with no limits.
The Forex broker is an intermediary entity between retail traders and the forex market or the interbank system, in which major banks trade with each other. The broker provides financial services to facilitate the process of buying and selling foreign currencies for retail traders. Clients of a forex broker may also include large financial institutions that trade on behalf of retail customers and investment banks.
Forex IB Vs. Affiliate
Some may confuse between the role of a forex IB and an affiliate, but there are major differences between both. The role of an affiliate is to set up an affiliate website or links and works on attracting referrals for the partnered broker. The affiliate can upgrade its status to become an IB. However, the main purpose of an affiliate is marketing. For the introducing broker (IB), marketing is just the first step. The introducing broker is able to establish long-term relationships with clients. This is the perfect scenario and a win-win situation for both the IB and the broker.
Who can become a Forex Introducing Broker?
Whether you are an individual or an entity, you can be a forex IB. There are no limitations or restrictions for anyone who wants to become an introducing broker (IB). No need to be a professional trader, only basic market knowledge with smart communication skills can make anyone a successful Forex IB.
How to Become a Forex IB
In order to become a successful forex Introducing Broker (IB) you should consider the following tips:
Gain Knowledge and Keep Learning
The more knowledgeable and experienced you are in the Forex market, the more efficient and successful you will be an Introducing Broker (IB). There are a variety of online resources on how to learn forex trading.
Start by learning the basic forex market terminologies and move gradually to advanced information. It is highly recommended if you have a trading experience that enables you to know how the market works, that will be a huge addition to your IB business.
Develop a Marketing Strategy
While developing your marketing strategy focus on the reasons why traders may join the forex market in the first place. Make sure to understand different trading motives and purposes as they vary from one trader to another. Is it because the forex is the most accessible and traded market worldwide? Is it because the variety of trading instruments? The leverage?
Do your research and join different trading communities or groups. Communicate with traders, understand them and develop relationships. This will help you expand your circle so you can promote your IB business.
Maintain an Online Presence
To ensure success and high commissions, you have to develop a credible online presence so your clients can search you up. Marketing yourself and establishing a personal brand is a vital step to your business. This is how you can portray yourself as trustworthy and reliable Introducing Broker (IB) with valuable insights. Consider sharing valuable knowledge through social media channels, reach out for people and let them know you.
Choose a Good Deal
Once you narrow down potential brokers to partner with, take your time assessing what they are offering. Despite commission rates are a top priority when comparing offers, evaluating the provided services can make a huge difference. So, if you can get high commissions for your referral clients, and they end up leaving the broker because of the poor services, that’s a very bad scenario for you as an IB. For your partnership to be lucrative, you should know how to retain clients. This can be an easy task if you joined a reliable broker with high quality services.
Find a Reliable Broker to Partner With
This step will require some research. Selecting the right broker is essential for the success of your IB business. Before making your decision, you should ask the following questions:
- Is it a Regulated Broker?
- Which Trading Instruments the Broker Offers?
- Does the Broker Offer Reliable Support?
- How advanced is the Trading Platform?
- Does the Broker Offer Educational Resources for Traders?
Choosing a regulated forex broker to partner with should be a high priority. Your clients will seek a reputable broker with regulatory supervision to trade with. Partnering with a forex broker that provides advanced trading platform, efficient customer support and variety of trading instruments will make you earn the trust of your clients and maintain success. Check how to choose The Best Forex Broker
Become an IB with AximTrade
You can become a partner with AximTrade, the world’s fastest growing forex broker, and exclusively enjoy:
- Competitive commission up to $20 per lot.
- Timely reporting.
- Limitless commissions.
- Diverse payment options and transfer solutions.
- Lifetime revenue.
- Great marketing tools to easily optimize your campaigns for maximized revenues.
- Partnership sponsorship programs.
AximTrade offers a diversity of trading options that suits individual trading needs. You can choose between various account types, based on your trading strategy, experience, and capital designed for investment. Choices include Standard, Cent, or ECN trading account. In addition to the exclusive Infinite Leverage Account. Enjoy favorable trading conditions with AximTrade; especially when it comes to margin and leverage levels.
With AximTrade, the best broker for you, explore the best trading experience through fast order execution (0.004s), instant deposit and withdrawal supported by a wide variety of payment methods, a minimum deposit of $1 with no commission, excellent customer service, and more. Check why traders choose AximTrade as the leading best broker and the full AximTrade Review for more insights about our exclusive services.
Simply apply to become an Introducing Broker (IB), share your referral link with your clients and earn profits every day.