An Introducing broker introduces the client, who he is deemed to have a direct relationship with to the regular retail broker who proceeds to set up a trading account on its platform for the client to commence trading activities in the Forex market. However, one of the means by which the retail broker spreads word out about its services to customers and competes actively in the local market is by going through individuals or entities known generally in the industry as Introducing Brokers. Introducing brokers may also be known as Marketing agents, Affiliates or partners. Securities or other financial instruments mentioned in the material posted are not suitable for all investors. The material posted does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies.
Our integrated platforms gives traders fast, accurate data and seamless operation between analysis and trading execution. When it comes to reliable providers of White Label components, B2Broker is the first name that comes to mind, as this provider of liquidity and technologies is among the world’s leading ones. The company offers top quality WL solutions for financial institutions, banks, hedge funds, brokerage businesses, exchanges, and more. Those partners provide consultation and all the required services, while a primary broker enters the room for the only task – to help a trade be executed.
What’s in it for your customers?
Search for and do business with multiple advisors, brokers, and wealth managers. Access dozens of advisor portfolios, including Smart Beta portfolios, offered by Interactive Advisors. Accredited investors and qualified purchasers can search for, research and invest with hedge funds. For every time I sign up a new IB, the question I always ask is “what service will you be rendering to your clients”. IB’s should offer valuable service to clients rather than just chase referrals to generate commissions/rebates for themselves. This can be achieved by training, seminars, providing signals and updating clients of regulatory changes in the industry generally.
- It is not targeted at the general public of any specific country and is not intended for distribution to residents in any jurisdiction where that distribution would be unlawful or contravene regulatory requirements.
- Find third-party, institutional-caliber research providers and access research directly through Trader Workstation .
- Broker clients can electronically trade or the broker may input trades for the client.
- The WL model means you will provide services to a broker’s clients on your side.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The placement of contingent orders by you or broker, or trading advisor, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders. The high degree of leverage that is often obtainable in commodity interest trading can work against you as well as for you. Optimus Futures, LLC is not affiliated with nor does it endorse any trading system, methodologies, newsletter or other similar service. Optimus Futures is an Independent IB that provides customers with access to a wide variety of services and clearing firms.
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All the other tasks are provided entirely on an introducing broker’s side. The main priority should be to ensure that new introducing brokers are dealing with a reputable and regulated broker. This will ensure that the clients who sign up are treated fairly, and that the IB payments are paid on time and correctly. Broker accounts at Interactive Brokers give global regulated brokerage companies the means to reduce their operational, brokerage and clearing costs while providing electronic market access worldwide with our professional white branded trading technology.
FINRA, in its review of any arrangement, may in its discretion require specific items to be addressed by the carrying firm as part of such firm’s due diligence requirement under this Rule. The carrying firm shall maintain a record, in accordance with the timeframes prescribed by SEA Rule 17a-4, of the due diligence conducted for each new introducing firm. The WL model means you will provide services to a broker’s clients on your side. This is why you need to be sure that your trading servers are powerful enough.
UNLIMITED EARNING POTENTIAL
This means that you cannot lose more than the amount of money invested with us. Investing in CFDs does not provide any entitlement, right or obligation to the underlying financial asset. IBs tend to have direct contact with their clients and offer specific services, while affiliates might simply promote the broker on their website, without offering any service to them. IBs will generally earn rebates – a share of the commission or the spread the brokers charge the client. The benefit is that the IB starts earning money from having made the referral from day one – there is no need to wait for the client to meet specific requirements. Rebates are generally paid out once per day, unlike CPA, where payments tend to occur once per month, for the previous month’s activity.
However, the carrying firm may authorize the introducing firm to prepare and/or transmit statements of account to customers on the carrying firm’s behalf with the prior written approval of FINRA. An introducing firm that acts as an intermediary for another introducing firm for the purpose of obtaining clearing services from the carrying firm must notify such carrying firm of the existence of such arrangement and the identity of the other introducing firm. Each such carrying agreement shall identify and bind every direct and indirect recipient of clearing services as a party thereto.
ADVANCED TECHNOLOGY WITH LOW LATENCY EXECUTION
When a brokerage company is at the stage of how to start a Forex business, owners are keen to get their firm ready to bring in profit. Successful companies understand that there is a set of effective forex introducing broker approaches to ensure earnings skyrocket. The information on this website is general in nature and doesn’t take into account your personal objectives, financial circumstances, or needs.