Let’s start by first defining what an Introducing Broker is.

There are a wide variety of definitions on what an Introducing broker (IB) is, and quite often there seems to be a confusion around the subject.

There are two types of brokers with a few differences. IB’s and Affiliates.

An IB in this case, introduces new business (leads or customers) to a brokerage working within the financial industry. They are essentially partners of the brokerage which get rewarded based on the number of clients that they refer to the brokerage. It is important at this point to clearly mention that they do not execute trades on behalf of the clients but rather, simply introduce and help the client throughout their trading journey with the broker which they‘ve introduced the client to.

In essence, the Introducing broker is someone (it can also be a company) that performs all the functions of a brokerage with the exception of accepting money from the clients.

The difference between Affiliates and IB’s is that an Affiliate would simply refer a client to the brokerage,usually by putting an ad on behalf of the company online, whilst IB’s also provide real services to the clients that are being referred. Thus affiliates are less involved throughout the client journey than IB’s.

Now that we‘ve defined what an IB is, lets see How do you become a Forex Introducing Broker.

There’s not much required to be able to start your IB business, but let’s break it down.

Setting up your Forex IB business

Initially you‘ll need to have your website set-up (just like every other business in any industry). Once the website has been set-up you may decide whether you‘ll incorporate a new company or simply work as a person. Additionally you‘ll need to have your bank account set-up through which you will be able to accept payments based on your business referrals. You‘ll need to choose which broker you‘ll work with and establish an IB account.

Lastly you‘ll need to promote your business.

Develop your Marketing plan

Understanding the driving force behind why you initially chose to be involved in the FX industry is key, as that is what is going to help you out when defining what differentiates your business from the competition. Was it that you were looking for something different? Was it the leverage and the opportunities trading on leveraged products has to offer?

Join online groups and communities, and become involved with traders who share similar needs and wants with you. Establishing a relationship and trust with potential clients is key to the success of your business. Social media is a great place to start.

Targeting your audience

Part of growing your business will be local communities. Join clubs and local communities that share a common interest in the forex industry and maybe present the opportunities that arise with them. This will establish the roots to create foundations for your business.

Consider targeting clients online via search marketing to increase traffic to your website and generate engagement. The broker you‘ve partnered with will usually be able to also provide you with the material necessary to set-up online campaigns.

You’ve then managed to start promoting your business both online and offline.

Education

Learning about FX and enhancing your knowledge around FX will increase your effectiveness as an IB. There is a wide variety of information offered online for free, the account managers at your partner brokerage should also be able to help and support you with education to mentor clients about the industry.

Trading on a live account would also go a long way towards your education as it will give you an in-depth understanding of how the industry works as well as the psychology behind trading. Owning a demo account is also useful but it will never allow you to understand the psychology unless you‘ve traded with real money.

We‘ve looked at what an IB is and how you can set up your own business. Now let's ev

What to look for when choosing an FX broker to partner with

There is an abundance of FX Partnership programs available. Some of the key factors to consider before choosing a broker is by going back to the roots of the business itself. Was the company set-up with traders in mind? Does the broker understand the needs of the client?

For example, Finior capital was set-up by traders for traders, offering a solid and diverse infrastructure through which professional traders have the means possible to reach their targets with our brokers client support.

Additionally, you need to ensure that the brokerage offers the safety and security necessary to protect your clients funds, as well as the means necessary to ensure the highest level of trading access.

Finior Capital ensures the highest standards of service through ADGM licensing, STP low latency trading for clients, 100+ Trading instruments, continuous client support, industry leading security measures, as well as LD4 direct connections.

Once you‘ve established that the brokerage can offer traders the services they need, it’s time to look at the benefits the partnership programs offer for the IB themselves.

The Finior capital partnership program offers solid and lucrative opportunities to partners wishing to join from around the world. Factors to consider, amongst others, include:

Contact us today and find out more about how to join the Finior capital partnership program. Join a broker that cares about offering you the means necessary to reach your full business potential.