Assuming that we have to put today’s financial world into one word, we would say – competitive. And, Introducing Brokers are a valuable and effective part of that competitive market.
With every kind of brokers all around the world, attracting new customers can be extremely challenging. As luck would have it, nowadays there are specialists in this process, known as Introducing Brokers (IBs) who smooth the path of getting in touch with new customers.
What is an Introducing Broker ?
Introducing Broker can be considered as an agent that introduces new customers to a brokerage company. The brokerage firm can be in any kind of financial markets, namely: forex, stocks, futures. Apart from just introducing the customers, some IBs also provide investing advices and counsels the investors.
There is a wrong idea of counting IBs as middleman, rather they are working in partnership with the brokerage firms. This partnership between brokerages firm and introducing brokers provides a win-win of benefits for both of the parties, since brokers need new customers; and IBs want a safe and reliable trading platform for their customers, from which they earn commission.
In some countries, like the US, it is required by law that Introducing Brokers have to be regulated and registered with such authorities, as NFA. In Europe however there are no such requirements, allowing any individual to act as an Introducing Broker, by simply providing some documentation for identity verification. Brokers, as FTD Limited, before working with any IB, first goes through verification process where the IBs are required to fill out an application form, where they are asked to verify their identification. Following the approval of the registration, where the brokerage firm has ensured that the IB will elevate the brokerage in a way that is consistent with the firms regulatory requirements, an account is opened for the IB.
How does one become an Introducing Broker ?
Step 1 : Getting Your License
Certain countries require that you get a license to work as an Introducing Broker. As we have mentioned earlier, in the US you must be registered with National Futures Association to work as an IB. In order to get information about your country’s requirements, you can consult the respective authorities in your country.
Step 2: Starting With Basics
Afterwards, you will need to set up a bank account where you will perform all of your financial transactions for business. In addition, you may open a website for your services by which customers can get more information about your services and get in touch with you for future questions.
Step 3: Find a Brokerage Firm
There are going to be hundreds of brokerage companies to choose from when starting your career as an IB. You need to research and find a safe, reliable and regulated entity, which will not in any ways ruin your reputation and always act in best interest of your customers.
Step 4: Understand the Market
Do not just promote, become a trader yourself and understand more about the FX market.
The more you learn about the financial markets, the more effective you’ll be as an IB. You could do both trading and marketing at the same time, by this method you would understand your customers’ needs more. The benefit of this is that when you get to know more about what you are promoting, you will become succesfull in that business.
Benefits of Partnership with FTD Limited as an Introducing Broker:
- Regulated by a Reputable Authority
FTD Limited is licensed and regulated by a well known regulator – BVI FSC.
Our team of professionals is following the strict rules of the financial world set out by the BVI Financial Services Community. The main rule of our business ethics is to always put the interests of our customers first, always providing quality service and excellent customer support. Therefore, working in partnership with IB, we always make sure not to put the IB’s reputation and credibility at risk.
- Fast Execution & Fair Prices
Forex prices can move quickly, but our reliable and safe trading platform always helps to guarantee that our customers never miss out on the best prices. The fair prices provided by our liquidity providers and fast execution makes the trading experience with us outstanding and valuable for our customers.
- Customer Support
Whether it is for a customer or Introducing Broker, we offer undivided attention in every question and problem they might meet along the way. Our excellent customer service is available for our customers and IBs in various languages, also provided IT support in order to run daily processes without any setbacks.
- Offering demo account with 100.000$ in virtual cash
No one can argue that there is always an element of risk involved in trading. For this reason, we offer the Demo Account which is a simulated market environment, a risk free way to explore and experience the trading world with confidence and put the strategies in test, without losing any money. When you open a demo account with FTD, you will be given immediate access to the newest version of Meta Trader 5 online trading platform with 100.000 $ virtual cash, with the latest market updated and technical analysis tools provided for free.
In the end, we can conclude our article saying that becoming an Introducing Broker is not a get-rich-quick solution, but rather it is a good way to make a good amount of money for dedicated people that are willing to invest their time and energy into learning actually what they are promoting and becoming part of the financial world.
Regardless if you are an IB already, it is vital to be always on top of the industry, consistently educating yourself, learning and having the latest information about brokerages, new trading platforms, best prices and strategies.
Please feel free to contact us for further questions or information about how to become a partner of FTD Limited as an IB.
Wishing our reader a good week!