The forex market is filled with a lot of job prospects. Hence, it welcomes the skill sets of different categories of people. Job opportunities for developers, financial analysts, expert traders, and marketers exist in this sector. However, for this article, we shall consider the role of a set of people termed Introducing Brokers (IBs).
And of course, a list of the best introducing brokers for the year 2022. This is because IB trading is an integral part of the forex system.
Who is an Introducing Broker?
An introducing broker is a company or individual that introduces a client to a broker. They are usually confused with affiliates by most people. The reason for this confusion stems from the general misconception that they both perform marketing functions. Hence, they perform the same roles with different titles. While the above statement is partly true, there are some distinguishing factors between these job descriptions. An introducing broker has a more direct and in-depth relationship with the client as they seek to ensure that the client’s needs are met.
They also provide other consultation services. For every trade a broker makes on behalf of the clients, the IB earns rebates (a share of the commission with the broker charges the client). They are usually referred to as the intermediary between the client and the partner broker. On the other hand, an affiliate has a transactional relationship with the client. Affiliates usually get referrals for a brokerage company through their website link. Once the client successfully fulfills the requirements of the broker, the affiliate receives a fixed fee. On average, this payment occurs once per month.
5 Best Introducing Broker 2022.
In this segment of the article, we shall consider the 5 best brokers of the year 2022 and they include
This brokerage company offers certain features to persons who have decided to be an introductory broker. One of these offerings is the chance to build a multi-level partnership network. With each broker that joins this platform, a community of affiliated clients who would earn evolving commissions is created. The first step in getting started on this platform is to create a partnership account and confirm its verification.
IBs who are verified have access to a pool of promotional resources. These partnership tools include referral links, ad materials, (logos, banners), tracking instruments, and other promo solutions. Clients that open a partnership account on this platform can become master IB. They can also grow a community of referred traders (sub-IBs). By growing this community, a multi-level community is created. The bigger the fellowship formed by the Master IB, the higher their earnings depending on their chosen reward mode. On this platform, there are 3 reward models applied in the granting of commissions and they include: revenue share, pay per lot, and cost per acquisition (CPA). For the first model, the more active traders an IB has, the higher their commission. The pay per lot model on the other hand assigns a commission when a referred trader trades a lot. For the latter model, an IB makes a profit every time a referred user completes a specific action. This company offers perks like instant payouts and multi-lingual support to its IBs.
This brokerage company has cemented its place among the greats. Many thanks to the work of IBs. XM offers its users a variety of interesting offers and programs.
Clients who enter into a client agreement with the company are offered a commission of 25$. Their IBs also receive a 10% commission on sub-partners.
With their user-friendly interface, partners can track detailed statistical information and receive remuneration for attracting customers.
This company also grants financial rewards to partners and customers by conducting raffles and promotions.
This Company has been in existence for more than a decade and currently they cooperate with partners from 190 countries. Their affiliate program has won some awards which include TOP IB Program and Best FX IB Program.
For their IB reward structure, the more client a partner brings, the higher his remuneration. Hence, the starting remuneration which is 40% can be increased up to 70%.
In addition to this, the company also employs the CPA reward structure. Once a client completes the verification of documents, the IB is liable to a reward of up to 16$. However, this remuneration is dependent on the country of the client attracted.
4. Olymp Trade
Another worthy mention on this list is Olymp trade. This is because their IB program is profitable and advanced. In this brokerage company, IBs directly work with the client. A good number of them are trading gurus, local representatives of the broker, and financial market experts.
The affiliate program of this company adopts a revenue share payment model. And they offer a 50%-60% revenue share. They also offer a sub-affiliate program that allows IBs to receive an additional 10% of the profits of sub – IBs.
Libertex has been in existence for close to 3 decades. Their longevity in the face of stiff competition makes them a worthy addition to this list.
This company offers a 3- level affiliate program. Under this company structure, an IB can expect to receive 40% of the broker commission. They are also entitled to a percentage of sub- IB profits ranging from 3%- to 15%.
Libertex makes it compulsory for its new potential partners to undergo training.
In addition to this, all IBs are provided with a personal manager. IBs start earning after attracting their first partner.
The importance of introducing brokers in the forex market cannot be overemphasized. This is because they offer clients a lot of useful trading strategies and how to seamlessly navigate the operations of a trading platform. Residents in regions like Malaysia who are scared of entering the forex market as a result of lack of information can rely on the expert opinion of an introducing broker
Persons who are interested in becoming IBs should ensure that they sign up with a reputable and transparent brokerage presence to earn the trust of potential clients.