Making money in the financial market is not restricted only to traders. Understanding the financial market and maintaining interest in the proceedings of the market is enough to make you money without necessarily executing direct trade orders.
An introducing broker acts as a link between clients and the financial market. Like an affiliate marketer, an IB works with an actual brokerage firm.
However, an introducing broker does more than just get more traffic for their partner broker. For example, an IB offers advice and monitors clients’ activities in the market. Introducing brokers affiliated with trading platforms like MTrading even offer copy trading programs to clients.
Perhaps you too are interested in earning from the financial market without actually trading. Find out the steps to become a registered introducing broker in this article.
Who can Become an Introducing Broker?
Almost any interested person or company can become an introducing broker. There’s really no restriction. In fact, you don’t have to be a professional trader to become an IB. However, some countries have some regulatory restrictions. So, before becoming an IB in such a country, you must have the necessary certification or license. If there is no restriction in your country, then all you need are your KYC documents and a reputable broker.
Indeed anyone can become an IB, but not everyone can be successful. So, you need an excellent strategy to implement your duties to your broker and clients.
What Are the Steps to Becoming an Introducing Broker?
Here are five critical steps to follow to become an introducing broker.
Step 1: Find Out and Get the Relevant Certification Required
Depending on your location, you may be required to produce specific certificates before you can become an introducing broker. There’s no special license or requirement for one looking to be an IB under the European Union. However, for other countries like the US and Australia, you must get some certification before becoming an IB.
Indeed, this makes becoming an IB relatively easier for individuals based in Europe. However, you must remember that brokerage firms will only partner with whom they deem worthy. So, besides the paperwork and certificates, you must ensure that you are actually qualified and up to the task.
Step 2: Find a Reputable Broker to Partner With
Once you have obtained the necessary certificates, licenses, and other requirements, the next step is to get the right broker. Selecting the broker to work with may be quite challenging as a vast number exists. So before choosing the broker to partner with, you need to take note of the following.
- The broker must be licensed. Ensure that appropriate authorities regulate the broker.
- Make inquiries on the quality of their trading platform and software.
- Ensure they offer a demo account for trading tutorials.
- Do they offer marketing assistance?
- Check their research tools and educational materials.
- Is there a mobile trading platform for android and iOS?
Before you become an IB, you must have had an idea or strategy for getting more clients for the broker. So, ensure that the broker you partner with meets your requirements. An IB benefits from the success of its clients, so you should ensure to get a broker that will help provide the best for your future clients. An excellent broker to consider even as you plan to become an IB is MTrading.
Check the MTrading IB forex program to register for an IB partnership.
Step 3: Make a Deal
After deciding on the right broker to possibly partner with, the next step is to look into what they offer their partners and introducing brokers. Check the rates and commission per trade, measure it against your budget, and confirm if it fits your trading style and the client types you hope to introduce to the brokers.
You need to weigh in on many things before deciding on the best deal you’d make with your broker, especially since you already have an idea of the kind of clients you attract. Do you prefer working with a few clients daily, or do you want to take them all simultaneously? Perhaps you want the commissions to accumulate over time, etc.
Just ensure to bargain well to get a deal that suits you best. You can choose from CPA, RevShare, or hybrid commission models. Ensure the rate you decide on perfectly fits your business strategies.
Step 4: Start Getting Clients and Referrals
At this time, you must have signed up your partnership with the brokerage service as an introducing broker. So, you need to start using your ideas and strategies to bring in clients. You could set up websites, social media pages, adverts, etc. Whatever method you have in mind to get in clients, it is time to start implementing and putting them into action.
Since you are not just an affiliate, as you’d be providing these clients with advice on how to execute their trades, you might need to know something about them. Understand their trading techniques so you know how best to help improve their chances of success in the market.
Don’t just abandon them when you finally bring them into the fold. You need to keep in touch with your clients to ensure they are making headway to continue to trade. Remember, the more they trade, the more you make money.
Step 5: Improve Your Online Presence
As an introducing broker, you need to establish your online presence if you really want to hit it big. The internet is already an established marketplace, so you must properly infuse yourself to attract new customers.
Also, your name needs to be ‘Google Gold.’ This means that upon Google searching your name, your portfolio should convince a client that you are a credible financial commentator. They should see enough positive reviews and returns indicating you are a top-notch IB. The more people notice you online, the more likely you get in more customers, which would increase the commissions you earn from your broker.
With the continued dependence on the internet, you need to ensure that you maintain your reputation and get positive reviews. Following all we discussed in this article will help you become an introducing broker. However, if you want to be successful, you must continue building on your success.
Adhering to all these will ensure you get more customers, which means more commission. You can kick start an IB partnership program with MTrading IB forex.