What is a forex IB?
Any legal person, individual or company that introduces/refers potential business to a Forex Broker and receives remuneration based on Revenue Share, CPA, CPL or P&L is considered to be an Introducing Broker (forex IB).
Should you become a forex IB?
To answer this question, you first need to look into the nature of your current business and understand what makes you good in attracting new business.You could be anything from:
- A simple website owner that uploads forex related content like news, broker lists/reviews, signals, opinions, videos etc
- A high traffic website (although this falls better in a forex affiliate program, if certain conditions are met you can put your site under a forex IB program)
- A forex trader that accumulated a number of followers over the years
- A forex trainer, providing traders and other industry participants insights into forex trading
- A forex industry participant who had some success in referring some people under smaller programs and wants to take it to the next level
- An existing forex IB that wants to evaluate other options and forex brokers
- An employee in the forex industry that has a portfolio and wants to start own operations
- A business in a different line of work with strong networks
- A forex enthusiast, who even though never traded and has nothing to do with the industry, is fascinated and wants to give this a shot – don’t laugh 🙂 that’s how we all started in the first place
As you can see, the forex IB program is suited for anyone, small or big irrespective of their current status. Your next milestone is to grow with your new partner (forex broker) and not to just deposit a portfolio with no retention or growth potential. Forex Brokers with opposite opinions that apply pressure are just not worth your time. They are also the ones to give you generously a higher commission, a fact that should raise a red flag all by itself. In the end you will be out there again looking for a suitable partner or even worse, saying goodbye to your forex operation.
“Your client portfolio doesn’t define you, how you handle it and what you do with it does”.
Although some individuals or companies are in position to receive more commissions as a forex IB than others, this doesn’t cancel the fact that you could be that individual/company in the near future.
“Remember that professional traders today were beginner demo leads a few years back and some of the established forex brokerages of today, were no more than simple networkers and IBs in the past”
So how does one succeed in a forex IB business?
Irrespective of what we talked about above, to win in this game you must face a simple truth. It’s always been and always will be a number’s game. From experience, a forex IB that is not happy in a current partnership is least likely to push this business forward and produce good numbers. And by good numbers, we don’t mean active clients, deposits or commissions earned. With good numbers we mean qualifying more and more potential leads that can be turned into rewarding revenue over time by simply talking about it and not being afraid or embarrassed to add it in a conversation.
Thus, it is imperative to work with a partner (forex broker) that you are comfortable with and a business deal that makes sense for you to work with. Once this is out of the way, the path is simple. Make sure that your network, old, current and new is aware that this is something you are deeply involved in and set the parameters of how you can provide support.
Now how you provide support brings us to another great point that answers how to succeed in a forex IB business. Your network (active and not) is not just numbers in a system and money in a bank account. They are people that join your program because you add value into their path for a successful trading experience. This added value could be your shared experience in trading or by connecting them with more experienced traders in your network, introducing them to educational webinars and workshops that aim to create traders and not burned accounts.
In addition you cannot and must not EVER promise or guarantee profits and make sure you’re there when they need you the most. A forex broker deals with a lot more than just your network and sometimes in the rush of the day they omit things, delay processes and fall victims of other minor daily issues that you can step in and fix so that your clients can have a hassle free experience.
Another important factor that determines the success or failure of your forex IB business is the pricing and charges that your clients incur, by being under your IB structure. By connecting with a broker under your IB program, your clients must feel that they connect as part of a larger network and therefore receive better pricing and charges, than if they connected on their own. If this is not the case, your forex IB business could be finished before it even begins.
What to look for, when searching for a potential partner (forex broker)?
- Reliability through extensive market experience
- Safety of funds through a reputable regulated environment
- Customer centric through their educational material online and offline
- Customer support and care when dealing with client issues
- Professionally trained sales reps to deal with your clients
- Strong platform, fast execution, competitive trading conditions
- Fast process of KYC, deposits and withdrawals
- Languages (support and website) to support your target audience
- Ability to support your forex IB business both offline and online
What payout makes sense in a forex IB business?
Well the answer to this question depends greatly on how the broker makes the money to pay your commission. If they offer high payouts, they will want to be compensated for it and that’s where the problems start. A forex broker, either you like it or not, will always be on the winning side of both relationships (Trader-Broker and IB–Broker). So sometimes less is indeed more because it ensures long lasting relationships within a long term plan, rather than short term gain that results in losing sight of things and ends up with a burned business.
In all scenarios, there will be a scaled compensation depending on the volumes traded by your network, and so it might be better to reach higher payouts through higher volumes by retaining your portfolio with the added value support we explained above, rather than forcing high commissions on smaller volumes that can only result in the broker misbehaving and burning your business.
How allFX-Consult can step into this picture:
As our worldwide client base increases, Forex IB and White Label plans emerge that allow networkers to work with some of the best professionals the industry has to offer.
- Newly established forex brokerages with strong finance background and solid funding, offering very flexible terms to support their new ventures.
- Well established investment firms offering partnerships for tied agents, regional partners and more complex structures.
Start your Forex IB business by:
With clients in Belize, Seychelles, the Caymans, Martial Islands and St. Vincent offering the most flexible IB and White Label solutions.
Connecting in the EU:
With clients in 15 out of the 28 member states offering strong partnerships to individuals and corporations with existing client base, looking to connect.
allFX-Consult always has a counterpart/partner for any corporate structure. But before we connect anyone, we thoroughly examine all possibilities.We’re chosen for being discreet, detail oriented and deadline driven.
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