Plenty of newbies to the foreign exchange market don’t really know who introducing brokers are and what benefit they may bring to the table. This article is going to give you a closer look at this topic.
In a nutshell, introducing brokers are customer catering arms for Forex trading firms. An introducing broker is responsible for driving business to the dealing firm and provide additional customer support for the client and the dealer alike.
On each trade that a client makes, the introducing broker is rewarded with a portion of the spread. In most cases, the dealing firm cultivates a close relationship with the introducing broker or IB thus providing them with a variety of trading tips which are then passed on the IB’s client. This only happens if you are working with a reputable client.
Introducing broker programs are growing in popularity at an astounding rate. Every day more and more people are realizing that they can make a substantial income merely by networking and understanding the workings of forex. At the same time, customers are increasingly opting to trade via an introducing broker as opposed to large brokerages. Most introducing brokers have some interest in forex but they may not have the resources or experience necessary to succeed as traders. For this reason, they concentrate on their strengths, such as valuable contacts in the financial sector, good networking skills, and the time and inclination to recruit new traders.
In a nutshell, introducing brokers are customer catering arms for Forex trading firms. An introducing broker is responsible for driving business to the dealing firm and provide additional customer support for the client and the dealer alike.
On each trade that a client makes, the introducing broker is rewarded with a portion of the spread. In most cases, the dealing firm cultivates a close relationship with the introducing broker or IB thus providing them with a variety of trading tips which are then passed on the IB’s client. This only happens if you are working with a reputable client.
Introducing broker programs are growing in popularity at an astounding rate. Every day more and more people are realizing that they can make a substantial income merely by networking and understanding the workings of forex. At the same time, customers are increasingly opting to trade via an introducing broker as opposed to large brokerages. Most introducing brokers have some interest in forex but they may not have the resources or experience necessary to succeed as traders. For this reason, they concentrate on their strengths, such as valuable contacts in the financial sector, good networking skills, and the time and inclination to recruit new traders.
