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Can you become a Forex Introducing Broker?
By Fiorenzo Fontana
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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