Becoming an Introducing Broker
Introducing brokers – also called IBs for short – are individuals or companies who act as an agent between the broker and the client.
The introducing broker traditionally refers new traders to their preferred broker and will earn commissions from this activity. The commission is paid by the broker from the commission/spread they earn from each trade.
Find the Right Brokerage to Partner with
Now that you have your paperwork and licenses in order, the next step is to find the right broker to partner with. There are hundreds to choose from, so this step requires significant research. You should ask the following questions before partnering with a brokerage:
- Is the broker regulated?
- How are their Trading Platforms and Software?
- What about Financial Instruments-what do they offer? CFDs, options, Forex?
- Do They Have Mobile Trading apps?
- Do they offer a demo account or trading tutorials to help your clients succeed?
- Is there marketing assistance?
