Any individual or company that has contacts with individuals or other companies who might be interested in trading forex online, either by themselves or through a forex broker can become a forex Introducing Broker.
Below are some typical examples of companies that can become successful forex Introducing Brokers (IBs). This list is not exhaustive, so if you don't see a description of your company type or your personal background, you can check out any forex broker online.
Independent Financial Advisers
Successful Forex Traders
Banks
Insurance companies
Advertising companies
Organisers of financial seminars
Estate agents
Sales Executives with interested* client base
Any business professional with interested* clients
*How do you know if your contacts are interested in the forex markets?
If your contacts are the kind of people who satisfy all or some of the following criteria, then the chances are that they might be interested in trading forex. And this means that you can earn commissions from introducing them to a forex broker:
Previous experience in trading online
Previous experience in investing
Have disposable income to trade
(usually above USD10,000)
Are interested in alternative forms of investment
Want to trade themselves
Want professionals to trade for them
There are few prospects that offer individual or commercial entrepreneurs more benefits than those provided by becoming an introducing broker in the online foreign exchange business. These benefits are driving more and more ambitious individuals and companies to offer their customers and contacts a direct route to trading currencies online and/or investing their money in professionally managed forex accounts.
Qualified businesses and individuals across the world take advantage of the rapid growth of the forex market via an introducing broker relationship. If you want to be one of them, read the section below on why you should become an Introducing Broker.
Below, I have listed just some of the advantages of becoming an Introducing Broker for an online forex brokerage:
Introducing Brokers - Why should you become one?
Your benefits
- Provide your customers and contact with access to the freedom that comes from actively trading their own money online on secure forex trading platforms.
- Increase the number of investment and money-making opportunities you offer your clients and network, which in turn improves the scope and reputation of your own business and can lead to greater client retention levels.
- You are paid a commission based on the trading volume of the clients you refer. For your clients, this doesn't mean that they pay more. You are remunerated exclusively by the forex broker out of his profit from your referred clients.
- You can receive daily reports on the commissions you generate through the clients you refer to your forex broker. This enables you to monitor the growth of you new business online, 24 hours a day.
- You can take advantage of the explosive growth in the demand for alternative investments by offering your high-net worth clients a managed forex account. By introducing clients to a managed forex account, you gain because their investments are being managed by professionals and this increases your reputation as a quality financial services provider.
- It's easy to get started as an Introducing Broker. In fact, if you simply decide you want to introduce clients for a commission based on their trade volume (which is the most popular type of Introducing Broker agreement), then all you need is a relationship with a couple of forex brokers.
- You can leverage the potential in your existing customer base or commercial relationships by constantly improving the level and depth of financial services you provide.
- Your clients often gain better service from you (if you choose to manage your relationship with them directly. The reason for this is that most forex brokers are international and that means that they may not have the in-depth expertise or understanding of your clients specific needs as you do. This improves your service offering and assists in building client loyalty.
- Your own Swiss bank account. A few forex brokers even provide Introducing Brokers with their own Swiss bank account where all commissions are paid. The advantages of having your own Swiss bank account are well known, but there are some great free guides to Swiss banking on the net.
Your clients' benefits
- Your clients can trade forex whenever they choose. The forex market is the most liquid and most actively traded market in the world. This means that 24 hours a day from Sunday evening 22:00 CET until Friday evening 22:00 CET they can decide for themselves when they want to trade and when they want time off.
- Your clients get free account management services to make their online forex trading even easier. All reputable forex brokers provide a complete back office (account management) system, free of charge to all clients.
- Your clients can diversify their investment into online forex trading. More and more investors and traders choose to spread their risk by investing in a number of capital market products, such as stocks, forex, futures etc.
- Your clients do not have to be investment wizards. Anyone can learn how to trade forex in a few hours. In fact, most forex brokers provide in-depth training in how to use their systems.
Getting started as an Introducing Broker
Make sure that the forex broker you choose to become an Introducing Broker for provides all the assistance you require to grow your new business.
The best ones in the market will provide you with the support, materials and training you need so that you can promote their online currency services to your clients and contacts in the most informed and compelling way as possible.
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