Introducing Brokers: Are They Bad or Do They Add Value?
If you ask most new Forex traders what an introducing broker platform is, the answer you will get is most likely to be a blank stare. What these traders don’t understand is that there is reward in being familiar with even the smallest bit of information or knowledge if you want to get somewhere.
A forex introducing broker platform comprise of independent entities who are required to be licensed, for instance, the NFA in the US. Such brokers operate as sales agents who introduce you to a Retail Foreign Exchange Dealer (RFED) that they have an official relationship with.
Who is an introducing broker?
Introducing brokers also known as (IBs) are organizations or individuals that provide investment advice or counseling to clients looking to invest and trade in the Forex market. Even though IBs don’t perform trades on behalf of their clients, they supply them with all the necessary tools that they might need to succeed. Since IBs have more knowledge and expertise in the foreign exchange market, they can explain all things related to it.
Introducing brokers usually help new clients to understand the most useful and fundamental techniques used in Forex trading. If you’re looking to trade currency pairs then you should know that a technical analysis is essential in helping you predict future trends. It also helps you know when to trade the currency pair in one direction or the other.
The basics of introducing brokerage
Introducing broker is not only exciting but also a rewarding career. As the Forex market continues to grow together with the rapid emergence of new demographics, more people realize that they can mold successful careers as introducing brokers.
Introducing brokers are of significant use to both traders and brokers such that their impact of the trading market has been immensely positive. Even though IBs don’t trade they are required to have some degree of knowledge about the process. The duty of an introducing broker is to explain the potential of foreign exchange trading to potential traders.
Why a new trader needs an introducing broker or to become one
Introducing broker platforms are becoming one of the biggest part of running a forex trading brokerage firm. Such firms or platforms require competent introducing brokers to ensure that there is a constant flow of clients coming in and that they are satisfied with the level of services being offered.
An introducing broker plays a major yet underappreciated role in the world of foreign exchange. Even though more experienced traders perceive introducing brokers as redundant or superfluous luxuries, they are a great source of assistance and guidance for new traders.
Have you ever had an interest in foreign exchange trading? If yes, it might interest you to know that you can begin your career as an introducing broker. This can get you to rub shoulders with some of the biggest players in Forex within a short time.
Why are introducing broker platforms so popular?
At present, introducing broker platforms are currently experiencing more popularity than was ever thought possible. These days it only takes a few hours to become an introducing broker or a foreign exchange trader. The reason for this is quite simple; as long as you have little Forex trading knowledge as well as a few valuable contacts, you can become an introducing broker and be on your way to making a great source of living alongside whatever else you do.
Another major enabler for the growth of IB platforms is the use of internet. With high speed internet connection being the norm in many households, it is much easier to get involved in foreign exchange trading.
Introducing broker platforms occupy a unique niche in the foreign exchange world. Similarly, working as a forex introducing broker is an excellent way for industry players who are smart to become financially independent or subsidize their income.