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An introducing broker refers to any individual or company that directs people and to a brokerage or trading company and gets rewarded for it. They act as a link between would-be investors/traders and the trading brokerage.
Ideally, there are no special qualifications required to become an introducing broker. You only need to know how to attract customers by advertising or offering trade-related services like wealth management or trader education. After this, you can direct these clients to your IB partner brokerage.
Therefore, anyone can become an introducing broker. You only need to find a broker to find the best introducing broker program, register an account, and use the referral link provided to direct clients to the broker.
Introducing broker history
Traditionally, introducing brokers were also referred to as commodity brokers or futures brokers as they operated within the more complex commodities and futures markets. Today, however, virtually all brokers have launched an IB program that welcomes introducers for every supported trade instrument – including cryptocurrencies.
In this guide, we look at the different roles of introducing brokers before looking at the top five introducing broker programs of 2021:
What does an introducing broker do?
- Solicit business on behalf of the broker: The primary role of an introducing broker is to solicit customers on behalf of their clients. Traditionally, IBs would advertise their services. Today, however, they have integrated IB into other crypto trading services.
- Bridge between clients and the brokerage: Introducing brokers act as the bridge between a trader and the brokerage. In most cases, IBs don’t just sell the brokerage but also orient the would-be clients on the nature of the platform – on behalf of the broker.
- May provide trader education: Some Introducing Brokers land clients while offering free or paid trading education to newbies and intermediate traders. They then direct these clients to start trading on brokerages where they act as introducing brokers.
- Offer wealth management lessons: Other introducing brokers organize wealth management lessons through websites, blogs, vlogs, or physical seminars. Here they teach about trading and the direct persons who wish to start trading to brokerages where they serve as IBs.
- Negotiate trading fees and commissions: Most brokerages will be more than happy to customize trading fees and commissions for high net worth clients and high volume traders. The newbie but high net worth investor may at times tap on the IB to negotiate better trading fees or commissions on their behalf.
Best introducing broker programs
1. XM Global Introducing broker program
XM Global is a multi-asset brokerage platform that currently accepts traders and Introducing Brokers from over 196 countries and territories where the brokerage has an established presence. The brokerage refers to their introducers of business as Partners and treats them to a wide range of perks. These include an IB commission of up to $25 per lot and 10% for sub-IBs.
When working with XM, there are no upper limits on how much commission you can earn. The broker also adds that this payment is guaranteed and paid out promptly – every week. In a bid to guarantee transparency, XM will connect each IB to a sophisticated but easy-to-use Partners Area. Here, you can monitor and track such account statistics as the revenue earnings in real-time.
The account registration process is also quite straightforward. According to the broker, it takes no more than two minutes to complete. This process will only ask for limited personal information, and XM commits not to share any of your or your referral’s data with third parties.
Some of the factors that make XM popular with IBs and an easy sell include its availability across the world, the fact that it supports multiple assets, and it is licensed, and is also highly regulated. Others include its support for multiple trade platforms (including MT4 and MT5), its multi-lingual platforms and customer support team (available in 30 languages), its competitive trading fees, advanced risk management tools (including negative balance protection), and the attractive welcome bonus of up to $5000.
Open an Account Now2. IQ Options Introducing broker
IQ Options also runs a highly successful ‘Introducers Program’ for their multi-asset brokerage. According to the broker, they are currently working with over 15,000 introducing brokers from 180+ countries and territories across the world. And one of the primary factors drawing them in is the high IB commissions – as much as 45% share of the commissions.
The onboarding process for the IQ Option broker’s introducers program is quick and relatively straightforward. The broker asks for limited personal information. It then presents you with the IB dashboard for monitoring your account performance via the revenue statistics tab that helps you track your earnings in real-time.
IQ Options runs a highly advanced and multi-asset trading platform whose key features make it an easy sell for most introducing brokers. Some of these include access to 350+ trading instruments, an intuitive user interface, ultra-fast order execution speeds, highly competitive trading fees, and a responsive customer support team.
Open an account now3. FBS introducing broker
FBS broker has carved a niche for itself in the world of forex trading. The broker also maintains one of the most dynamic packages for its introducing brokers – also referred to as FBS partners. Here, you get to earn up to $85 for each lot traded on the platform and as much as $15 for each EUR/USD lot. There is no limit on how much commission you can earn by directing clients to the forex brokerage.
The registration process for the partner account is easy and straightforward. Some of the factors that set the FBS partner program from the rest are such unique features as access to a personal affiliate manager. Interestingly, you can also set the partner account to process daily withdrawals for any earnings. The broker will also provide you with free and unique marketing and promo resources to boost your FBS promotion campaigns both online and offline.
Some of the FBS broker features that make it a soft sell to both beginner and experienced traders include the fact that it provides them with multiple account types. These range from the standard account whose spread starts from 0.5pips, the zero spread accounts for fixed spreads and the ECN account whose spread ranges from 1 pip. Traders also have access to qualified and a highly responsive support team, a welcome bonus, and leverages of up to 3000:1.
Open an account now4. Libertex Introducing brokers
Libertex is a global market leader and an award-winning brokerage started in 1997. Today, it runs a highly advanced multi-asset trading platform (hosting 250+ trade instruments) and is also available to traders in 110+ countries.
It runs an equally successful partner program with a two-way compensation method. The first is the commission-sharing scheme, where the IB receives as much as 60% of the spreads. Alternatively, they can opt for the CPA remuneration plan that rewards them with up to $1200 for recommending clients who meet certain criteria.
But why register as a Libertex introducing broker? Because it is not only a great sell to clients but also because of the features advanced to its partners. It, for instance, gives traders access to leverages of up to 600:1, they also benefit from discounted spreads – up to 50%, it is highly regulated, plus it maintains a simplistic and quite user-friendly interface.
Open an account now5. eToro introducing brokers
eTor is arguably one of the most popular online trading platforms around. Started in 2007 in Israel, the broker is now available in 140 countries and territories across the world. It is best known for its highly advanced trading platform and also as the first multi-asset broker to integrate social trading.
eToro runs an introducing broker program and refers to them as Introducing Agents. By default, eToro IAs are rewarded using a CPA plan, but you can change this to a commission-based reward plan by contacting your affiliate manager.
The process of registering as an eToro Investment Agent is simple and straightforward. Once your IA account is approved, you will have access to a dashboard that you can use to gain access to a dashboard that you can use to track your revenue statistics in real-time. You will also have a personal affiliate manager guiding you on how to maximize your earnings, as well as free promotion materials like banners – on request.
Bottom line
The introducing broker concept has since moved from the futures and commodity markets. Today, almost all online brokers run an introducing broker program that targets new clients for all their trading instruments, from forex to cryptocurrencies. However, the features of these IB programs and the reward scheme vary from one broker to another. From the above list, you will realize that FBS runs a commission-only reward scheme, Libertex offers both commission and CAP plan reward options, eToro offers a CAP plan reward by default. Consider these and the IB program features offered by different brokers when deciding on the best IB program for you.
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