Before learning how to become an introducing broker, you must learn what is introducing broker and how to become an introducing broker. There are plenty of benefits of becoming an introducing broker. But before learning that, we would like to highlight some facts about becoming an introducing broker and how it works.
What is Introducing Broker?
Introducing Broker (IB) is a person or entity whose job is to refer Forex traders to a certain Forex broker. Do not get confused introducing broker with the broker itself. Both of them tried to get traders trading with the broker. But Broker is the owner here and IB works for commission. A broker can have many IBs. That is, an IB is an intermediary between the customer and the broker company.
Here, the funds deposited by client will remain under customer’s name; the IB will not receive money or other client’s assets. IB will get commission from the spread gathered by broker from customer’s trading.
Types of Introducing Broker
There are two types of introductory brokers:
- Introducing Brokers Based on CPC:
These IB partners get a large amount of money for one time from a broker when a trader joins the broker and deposit a certain amount of money. These types of IB’s don’t get commission from the spreads.
- Introducing Brokers Based on commission:
These IB’s are traditional partners who get commission as a percentage of spread earned by the broker from clients trading provided that the client should be introduced by that particular IB.
In both cases, the IB earns a portion of the spread.
Benefits of trading under an Introducing Broker
While many traders do not want to have an introductory broker, because they think it is better to deal directly without intermediaries, you should keep in mind that the introductory brokers do not receive money from customers, or interfere with the platform or spreads. That is, you will not pay a higher spread by having an introductory broker. However, having an introductory broker may have certain benefits for traders in the Forex market because, as mentioned above, many introductory brokers are allowed to offer discounts on spreads and bonuses, benefits to which a trader without introducing broker cannot have access. Other introductory brokers offer services like free Forex signals.
How to become an Introducing Broker
The first step to become an Introducing broker is to find a broker offering beneficial IB program with good reputation. We will highly recommend you to get started with HYCM Broker, as they are working in this field from 1977 with hundreds of thousands client’s base around the globe.
HYCM is the ideal partner for anyone looking to offer a bespoke trading solution that is customized to their unique business requirements.
Benefits of becoming Introducing Broker with HYCM
- Security of an FCA regulated, UK-based broker
- State-of-the-art technology
- Multiple Trading platforms including MT 4 and mobile
- Competitive spreads and trading terms
- Access to exclusive research and educational tools
By Introducing your customers or connections to the industry leading online trading services offered by FCA Regulated HYCM and get benefits from attractive compensation packages. This broker has a global, 24/5 support in multiple languages, they can offer your clients the tools and resources they need to trade comfortably. You can enjoy all sorts of benefits of becoming an introducing broker with HYCM Broker.
- Full back-office support and reporting tools
- FCA Regulated
- Multiple trade platforms
- Full product offering
- Competitive pricing
- 24/5 customer service and support
- Efficient payouts
Steps to become an introducing broker:
- Go to this link: HYCM IB Partner
- Click on the logo to go to IB account opening page
- Click on Partnership, and then click on Introducing Broker
- Fill up the IB Registration Form
- Verify you email address and you are done!
Start referring your broker to your friends and circles and get commission for every successful conversion! Remember! Every trader counts!
|Chapter 11||Further reading about Forex Trading|
|Lesson 1||Full time Forex trader|
|Lesson 2||Forex Trading signals|
|Lesson 3||TRADING BINARY OPTIONS|
|Lesson 4||How to Become an Introducing Broker|