What’s An Introducing Broker?

An introducing broker, or IB for short, is a company or individual who introduces its clients to a broker. While acting as a referral, it is also an agent between the broker and the client. IBs must provide their services to maintain rapport with clients and keep them around. When a trading client carries out business (i.e., performs a trade) with the broker, the IB earns a small percentage of the commission. The commission is usually in accordance with the lot size the client trades.

For example, Ali is an introducing broker who refers Susan to ABC Broker. The promised commission between ABC Broker and Ali is $1 for each 1.0 lot traded. When Susan opens a trade of 0.5 lot, Ali gets a 50-cent commission credited in return.

Becoming a successful IB is about gathering as many clients as possible to increase the chances of earning more commission. IBs usually offer specific services to attract and maintain clients. Some provide profitable trading signals for clients, and some provide free trading courses, webinars or even one-to-one trading. Many of them have a social media presence and could run ads to promote their IB business on social media too.

If you are an individual or a retail trader looking to become an IB, it is encouraged to choose a credible broker. Simply download the free WikiFX app and look for a broker that has a score of 7.0 and above, is regulated by an authority body, and has valid licenses. This is an essential step for an IB, too, not just for retail traders, because we at WikiFX also received complaints about unreliable (scam) brokers taking advantage of their IB.

Read here: https://www.wikifx.com/en/newsdetail/202207269814858311.html

Therefore, it is always crucial to stay on the safe side when it comes to being a participant in the forex industry.