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Can you become a Forex Introducing Broker?
by admin@forextrading-system.com
http://www.forextrading-system.com
Any individual or company that has contacts with
individuals or other companies who might be interested in
trading forex online, either by themselves or through a
forex broker can become a forex Introducing Broker.
Below are some typical examples of companies that can
become successful forex Introducing Brokers (IBs). This
list is not exhaustive, so if you don't see a description
of your company type or your personal background, you can
check out any forex broker online.
Independent Financial Advisers
Successful Forex Traders
Banks
Insurance companies
Advertising companies
Organisers of financial seminars
Estate agents
Sales Executives with interested* client base
Any business professional with interested* clients
*How do you know if your contacts are interested in the
forex markets?
If your contacts are the kind of people who satisfy all or
some of the following criteria, then the chances are that
they might be interested in trading forex. And this means
that you can earn commissions from introducing them to a
forex broker:
Previous experience in trading online
Previous experience in investing
Have disposable income to trade
(usually above USD10,000)
Are interested in alternative forms of investment
Want to trade themselves
Want professionals to trade for them
There are few prospects that offer individual or
commercial entrepreneurs more benefits than those provided
by becoming an introducing broker in the online foreign
exchange business. These benefits are driving more and
more ambitious individuals and companies to offer their
customers and contacts a direct route to trading
currencies online and/or investing their money in
professionally managed forex accounts.
Qualified businesses and individuals across the world take
advantage of the rapid growth of the forex market via an
introducing broker relationship. If you want to be one of
them, read the section below on why you should become an
Introducing Broker.
Below, I have listed just some of the advantages of
becoming an Introducing Broker for an online forex
brokerage:
Introducing Brokers - Why should you become one?
Your benefits
Provide your customers and contact with access to the
freedom that comes from actively trading their own money
online on secure forex trading platforms.
Increase the number of investment and money-making
opportunities you offer your clients and network, which in
turn improves the scope and reputation of your own
business and can lead to greater client retention levels.
You are paid a commission based on the trading volume of
the clients you refer. For your clients, this doesn't mean
that they pay more. You are remunerated exclusively by the
forex broker out of his profit from your referred clients.
You can receive daily reports on the commissions you
generate through the clients you refer to your forex
broker. This enables you to monitor the growth of you new
business online, 24 hours a day.
You can take advantage of the explosive growth in the
demand for alternative investments by offering your high-
net worth clients a managed forex account. By introducing
clients to a managed forex account, you gain because their
investments are being managed by professionals and this
increases your reputation as a quality financial services
provider.
It's easy to get started as an Introducing Broker. In
fact, if you simply decide you want to introduce clients
for a commission based on their trade volume (which is the
most popular type of Introducing Broker agreement), then
all you need is a relationship with a couple of forex
brokers.
You can leverage the potential in your existing customer
base or commercial relationships by constantly improving
the level and depth of financial services you provide.
Your clients often gain better service from you (if you
choose to manage your relationship with them directly. The
reason for this is that most forex brokers are
international and that means that they may not have the in-
depth expertise or understanding of your clients specific
needs as you do. This improves your service offering and
assists in building client loyalty.
Your own Swiss bank account. A few forex brokers even
provide Introducing Brokers with their own Swiss bank
account where all commissions are paid. The advantages of
having your own Swiss bank account are well known, but
there are some great free guides to Swiss banking on the
net.
Your clients' benefits
Your clients can trade forex whenever they choose. The
forex market is the most liquid and most actively traded
market in the world. This means that 24 hours a day from
Sunday evening 22:00 CET until Friday evening 22:00 CET
they can decide for themselves when they want to trade and
when they want time off.
Your clients get free account management services to make
their online forex trading even easier. All reputable
forex brokers provide a complete back office (account
management) system, free of charge to all clients.
Your clients can diversify their investment into online
forex trading. More and more investors and traders choose
to spread their risk by investing in a number of capital
market products, such as stocks, forex, futures etc.
Your clients do not have to be investment wizards. Anyone
can learn how to trade forex in a few hours. In fact, most
forex brokers provide in-depth training in how to use
their systems.
Getting started as an Introducing Broker
Make sure that the forex broker you choose to become an
Introducing Broker for provides all the assistance you
require to grow your new business.
The best ones in the market will provide you with the
support, materials and training you need so that you can
promote their online currency services to your clients and
contacts in the most informed and compelling way as
possible.
Fiorenzo Fontana
http://www.forextrading-system.com
Fiorenzo has held several senior positions in the
financial services industry as a trader and analyst at
UBS. Fiorenzo has built a career spanning more than 25
years in investment banking and capital markets trading.
Mr. Fontana is a citizen and resident of Switzerland and a
graduate of the Chiasso Business School, Switzerland.
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