An Introducing Broker, also known as IB, is an individual or a group of people that tries to build a list of active clients, hence traders, by referring them to a company. IBs receive all necessary material, tools and support for their promotional efforts. Unlike affiliates, who simply refer and get rewarded, IBs have to provide custom-made services and constant support to the clients they refer, so automating the whole process can be difficult. Eventually, the IB gets a commission based on their clients’ trading performance. Therefore, the more clients IBs refer and the more completed trades, the more commission they will receive.
There is a mutual benefit in the partnership between the broker and the Introducing Broker. The former gets new clients who register and trade using their platforms and the latter gets a commission on all completed trades performed by their referrals.
This article will examine how to generate revenue as an IB through choosing the right online broker as well as what to look for in one.
How to earn revenue as an Introducing Broker
A key factor in establishing a successful IB partnership is choosing the right online forex broker. As already mentioned, IBs get a commission based on their referrals’ trades, so the bigger the client base the higher the revenue volume. It’s important to note that before a new registration is completed, part of the IBs’ role is to discuss expectations as well as the terms and conditions with the clients.
If Introducing Brokers fail to partner with a trusted and reliable broker, they could jeopardise their earnings, clients and certainly their reputation. Especially within the chaos of online reviews and social media, maintaining a good reputation is vital.
What you need to do as an IB?
You will need to assess the tools and products offered by the online broker so as to achieve higher commission, customisable solutions and continuous development and growth. However, as this is not a simple endeavour, we’ve gathered a few things below to check when choosing an online broker to partner with. You need to ensure that your online broker meets these criteria, your requirements and your clients’ needs in order to see your efforts pay off.
To start with, you should partner with a regulated broker to make sure that they comply with the supervisory body’s guidelines. This way, you will also earn your clients’ trust more easily and you will maintain your good reputation. Untrustworthiness may result in losing clients because of bad reputation.
Another important factor to consider is the broker’s customer service and the quality of their assistance. Additionally, you should look for brokers that offer support in multiple languages so as to expand your client base and cater to their mother language as well.
Trading platform & mobile responsiveness
Having access to advanced trading platforms is of high importance as this will give your clients access to the global markets. The majority of brokers offer the industry-standard MT4 platform, which is compatible with Windows, macOS, iPhone/iPad, Android and Webtrader. Go with the broker that offers various options for your clients’ different needs. Make sure that all platforms are mobile responsive as it is likely that most of your clients prefer trading on their mobile phones, on the go.
Financial instruments & assets
Most CFD brokers provide clients with a wide range of trading products on the most popular asset classes such as forex, metals, shares, indices, commodities and futures. Your clients will appreciate you as an IB for making available numerous options for them.
Being able to offer a demo account will also be reassuring for your clients, regardless of their trading experience. Having the possibility to practise on a demo account before entering the markets with real money will boost their confidence while sharpening their skills on using the trading platform. Therefore, choosing a broker that offers a demo account is useful.
Marketing & Educational Material
Growing your business and promotional efforts will require some assistance, so look for a broker that offers advanced marketing tools and educational material including banners, LPs, eBooks, webinars or workshops and daily market analysis. All of these can be of great help when you will try to catch clients’ attention. Also, make sure that the broker is willing to always enhance their material and stay up to date with the market’s trends.
Last but not least, look for a broker that provides fast payments and accurate reporting so that you will be able to manage, keep track and get reports regarding your referrals.