An Introducing broker, also known as an IB for short, is a third-party agent who facilitates
connections between broker firms and trading platforms with traders and investors.
They play a pivotal role in the financial markets by fulfilling two essential purposes:
Expanding the client base for brokers.
Improving the trading or investment experience for traders.
Purpose of an Introducing Broker
The primary objective of an IB is to help brokers attract and acquire new clients. By
leveraging on their expertise, networks, and marketing strategies, IBs effectively promote
their services and offerings of broker firms to a wider audience.
As intermediaries, IBs can leverage their industry networks by tapping into their extensive
network of contacts, including fellow traders, investors, financial professionals, and
industry influencers, to refer potential clients to their broker.
Why become an Introducing Broker?
Earn passive income : As an IB,
you will earn a rebate based on the trading activity of your clients. This means
that each time your client closes out a trade, or fulfils a trading requirement, or
carries out specific transactions, you will earn some money.
Be your own boss : Another reason
to become an IB is that the role essentially allows you to be your own boss, where
your success is largely in your own hands. You decide your own work hours, where you
will work from, how many clients you want to sign up each week or month, what
services you will provide, and etc.
Who is suitable for the IB program?
The IBs program is best suited for those with a strong trader audience such as:
