Can
You Become A Forex Introducing Broker?
by John Gaines
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.
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.
