Word of mouth has always been an excellent marketing technique, leading to the creation of affiliate marketing. Affiliate marketers receive a commission or discount for every new client they introduce to a company. With the fantastic results of this marketing strategy, even forex brokers have started to take advantage of it, calling their affiliates Introducing Brokers (IBs).
If you have questions such as, “What is an Introducing Broker,” “What does IB mean in forex,” “What does an Introducing Broker do,” “What are the pros and cons of Introducing Brokers,” and “How to Become an Introducing Broker in forex,” this blog post is for you. Keep on reading to learn more about the best forex Introducing Broker (IB) programs!
What is an Introducing Broker (IB) in Forex?
The word IB in forex terminology is short for Introducing Broker, a person or company that refers new clients to brokers in exchange for a commission or a discount. IBs also try to maintain the broker’s current clients. In fact, one of the major jobs of an IB is to make trading through brokers easier for clients. To do this, they offer a bundle of resources to their referred traders. Despite these resources, it is essential to understand that Forex Introducing Brokers do not directly engage in executing any trades for clients.
Different brokers offer different kinds of Introducing Broker (IB) programs. Some brokers invite every client to play an IB role and receive a discount on their trading costs; some others cooperate with Introducing Broker (IB) companies and pay them a commission on the trades of every client they introduce to the broker.
Forex IB discounts and commissions are directly connected to the number and size of trades their referred traders execute. As a result, Introducing Brokers try to keep the traders motivated by providing training materials and courses, ongoing support, etc. In fact, for every trader who leaves the broker, the IB loses a portion of their discount or commission.
What are the Roles of an IB?
Now that the concept of Introducing Broker (IB) is clear, it is time to explain what exactly an IB does and what the roles and responsibilities of an IB are. While there are differences between Introducing Broker programs among brokers, there are common roles and responsibilities that we can mention here.
1- Acquisition of New Clients
Based on what has been told so far, it is obvious that the main job of an Introducing Broker (IB) is to introduce a broker to new potential clients in an attempt to persuade them to open a trading account in the broker and start trading.
2- Supporting And Training The Referred Traders
As we mentioned earlier, as long as the referred traders stay with the broker and keep trading, the IB gets its share. While IBs receive their commission regardless of the results of the trades executed by their referred traders, it is critical for IBs to help their referred traders to succeed. That’s because the traders need motivation to continue trading through the broker and what motivation is better than making profits constantly?
Introducing Brokers not only facilitate the trading process for traders through constant support and answering their questions, but also keep them motivated by educating them and helping them be successful traders. As a result, many Introducing Brokers offer investment courses and valuable insights to their members about risk management, developing a trading plan, trading with discipline, and successful trading.
3- Marketing
The methods that IBs use to attract potential traders to the broker are up to the IBs themselves. Normally, a professional IB promotes the partnered broker through different channels such as email marketing, social media, in-person marketing, streaming platforms, etc.
To make the roles of an IB clearer, it is not a bad idea to also mention things that you should not expect an Introducing Broker (IB) to do, and here they are:
- Trading advice: While IBs are free to provide their referred traders with education and even administrative support, they are not allowed to offer any trading advice (i.e., trading signals). All the trading decisions should be left to the traders themselves.
- Executing trades on behalf of other traders: While in some brokers, IBs could also be traders themselves, they are not allowed to execute trades on behalf of their referred clients.
Why Become an Introducing Broker (IB)?
Whether you choose to be a casual IB or run an IB company, it is a smart way to make money without risking your funds. Here are some of the main advantages of being an IB:
- Reduction of your trading costs: In some brokers, traders are offered to receive discounts on trading fees (such as commissions, spreads, etc.) in return for bringing new clients.
- Making money: Some brokers pay commissions to IBs for every trade executed by the referred traders.
- Flexible job: Being an Introducing Broker (IB) can be a fully flexible job. You can do it regardless of your location or the time of the day. The only thing you need is a computer and an internet connection!
To become an FX IB, you should have outstanding marketing skills, as clients may be opposed to joining the broker for several reasons, including the exposure of personal data to a third-party entity and higher commission rates accompanied by IB programs. Although many consider this to be a downside of becoming an IB, it’s one of the first requirements of the Introducing Broker job description. So it’s best to work on your marketing game and check for other forex Introducing Broker requirements before becoming an IB.
How to Become an IB?
Becoming an IB is a great way to make money or decrease the costs of your trades in the forex market. If you want to trade in forex and you haven’t chosen your broker yet, it is a good idea to compare different brokers in terms of Introducing Broker programs (in addition to more important things like regulatory, reputation, spreads, commissions, etc., of course!). Many forex brokerages allow you to both trade and play the roles of an Introducing Broker (IB). They offer you a commission or discount for every trade executed by your referred traders.
If trading is not your cup of tea, but you are a persuasive person or a capable marketer, you can consider being just an IB. This way, you can make money by receiving forex Introducing Broker commissions without risking any of your real capital. The only thing you need to do is to motivate people to open trading accounts in the broker(s) you work with and persuade them to trade as much as possible.
You can also acquire an Introducing Broker license and establish your own IB company. Launching your own Forex Introducing Broker (IB) requires more resources, expertise, and experience than the options above. However, if you are familiar with both forex and marketing and want to start your own business, founding an Introducing Broker (IB) company is a great way to make tons of money.
Best Introducing Broker Programs
As mentioned earlier, there are various IB programs offered by different brokers. Each program has its own pros and cons, and if you are considering becoming an Introducing Broker (IB), you need to find a program that suits you better. Here, we are going to review some of the best IB programs out there. Keep reading!
The ITB Broker IB plan stands out among various IB programs in the market. With more than 250,000 traders around the globe and more than 5,000 Introducing Brokers participating in its IB program, ITBFX shows great potential for both traders and marketers. The program has 24/7 support and flexible plans, which set it apart from other Introducing Broker (IB) partnership programs. The commission paid to IBs depends on the plan they use and the number of trades their affiliates execute. Additionally, IBs on ITBFX can take advantage of their amazing consultant to exclusively help them make as much money as possible. What’s best is that there are no limits on how many traders you can refer to the broker.
1- XM Partnership
XM partnership is an Introducing program offered by XM broker, which happens to be one of the best brokers in the forex market. In this program, an IB is paid up to 25 dollars per lot their referred traders trade. XM broker pays the IBs through different methods, such as crypto (USDT), Stickpay, Skrill, etc., on a weekly basis. It also offers a Cost Per Acquisition (CPA) plan in which the IBs are paid up to 650 dollars per each client they bring.
2- Eightcap Partners
Eightcap Broker, a popular and trusted broker in the forex market, offers an Introducing Broker (IB) program called Eightcap Partners. In this program, IBs are paid up to 6 dollars per lot for each trade executed by their respective traders. It also has CPA and revenue share plans. The payment methods are Skirll, USDT, and Bank Wire.
3- ITB Broker IB plan
Another great IB program for you to join is the ITB Broker IB plan. At the time of writing this blog (2024), ITB broker is trusted by more than 250,000 traders around the globe, and more than 5000 Introducing Brokers participate in its IB program. The great thing about this program is its constant 24/7 support and its flexible plans. In addition, the number of referred traders of yours is not limited. The commission that is paid to any IB per each trade executed by their referred clients depends on the plan. It also offers an amazing consultant to help the IBs make as much money as possible.
What are the Benefits of IBs for Traders?
So far, we have shed light on the concept of IBs and their role in forex. We also explained why you should consider becoming an IB in one of the most liquid financial markets in the world and how to do it. Now, it is time to take a look at the concept of IB and its benefits from a trader’s perspective.
Even if you’re content with your trades and don’t want to be an Introducing Broker (IB), you should still know about IBs and the benefits of opening a trading account in a broker through their referral or joining a rebate program in your current broker.
Advantages of Opening an account through an IB's referral
As we mentioned earlier, the main role of IBs is bridging traders and brokers together. They also try to persuade the traders to stay with the broker and continue trading. As a result, Introducing Brokers provide services such as ongoing support and education to traders. These services increase the chance of traders staying with the broker and trading more, while working in favor of traders. In fact, if a trader opens a trading account through an IB’s referral, they probably receive constant support and training from their IB.
Another benefit of registering with a forex brokerage through an Introducing Broker (IB) is the possibility of joining a rebate program. But what is an IB forex rebate program? It is a marketing strategy many brokers use to encourage traders to trade more. As mentioned earlier, brokers pay a portion of the referred investors’ trading costs, including spreads and commissions, to the referring IBs. The IBs then allocate part of this commission to their referred traders to motivate them to keep trading with the broker.
Conclusion
In this blog, we reviewed the role of Introducing Brokers (IBs) in the forex market. Working as an IB is a great way to make money in forex without risking anything. Essentially, IBs act as marketers who bring traders and brokers together. Being an Introducing Broker is an entirely flexible job that anyone can do as long as they have an internet connection. If you want to participate in one of the best Introducing Broker programs, consider the IB plan offered by ITB Broker.
From a trader’s perspective, registering with a broker through an IB’s referral offers several benefits, including receiving support and training from the Introducing Broker (IB) and reducing trading costs by joining a forex rebate program. If you have any questions regarding ITB broker’s IB and rebate programs, do not hesitate to contact us!
The main role of an IB is to present a broker to possible clients. In addition, IBs usually try to encourage their referred traders to stay with the broker and trade more by providing support and training.
There are no risks related to working as an Introducing Broker (IB) in the forex market. In fact, to work as an IB, you don't need to engage with trading and its risks.
If a trader registers with a broker through an IB's referral, they benefit from the support and education offered by the Introducing Broker (IB) and can also participate in the broker's rebate programs.
Submit Your Comments
(Replying)
Please keep in mind to avoid offensive keywords and also fake information.
Be the first one to comment.