Introducing brokers forex and the market as a whole are growing exponentially by the day, and it seems more people want to work as brokers than do any actual trading.
There is another player in the market that some novice traders are often skeptical of — the introducing broker (IB). Many traders think an IB is a middleman acting between the trader and the broker, and that working with an IB is going to mean high fees for you.
There may be an added charge, yes, but the benefits of working with an introducing broker far outweigh any costs that may be associated with the arrangement.
For one thing, introducing brokers forex often receive a large discount from the brokers due to the large number of customers the bring to the firm, and most pass at least a portion of the discount on to you, the trader.
Another reason why an IB is the way to go for you, the trader, is because of the clout and influence they have with the broker. All brokers say they offer the best customer service, but with literally thousands of accounts under management, the broker only really cares about the ‘high roller’ customer who can have millions in their trading account — or the IB — who represents a high volume of client traders. So it doesn’t matter how much you have in your account. Though an IB, you’ll get the same customer service that the ‘big dogs’ get.
Still not convinced? How about considering all the free services, rebates and competitive rates that introducing brokers forex offer in order to attract traders like yourself. These perks, like free trading software or free trading signals, can substantially increase your chances of making a profit.
Selecting which IB to use is a lot like picking a broker to trade with. Traders should always do their homework on both the IB and the broker, and not just begin trading with the broker recommended by the IB. One way to get a good idea if a brokers and/or IB is a reputable one is to Google the forex client ratings forums out there. But beware — a negative comment about either an IB or a brokerage does not give the whole picture, as people are more likely to write negative reviews than positive ones.
There are many advantages to using introducing brokers forex, but as with anything in life, be sure you are convinced that the services on offer are right for you.