Who Is An Introducing Broker?

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  Does the world of investment interest you? And Have you been looking out for a way to make money without conducting direct trades? Then you may find success as an Introducing Broker. It is no news that in the forex market, the services of various people are being relied on. It welcomes every category of participants from active traders to passive ones and even those who do not execute trades but aid the trade of others by their services. The forex market is the largest functional market in the world presently, with a huge turnover of about 6.6 trillion dollars daily, thus making a lot of people attracted to this space. Attracting new clients, however, is one of the hardest tasks to achieve after opening a brokerage firm as this can be achieved through advertisement, e-mail marketing, tradeshow participation, and search engine optimization(SEO). But an important service a forex broker shouldn’t ignore, to help increase client base, earnings and great profit is that of an introducing broker. An Introducing Broker, therefore, is an intermediary between a brokerage firm and its clients. An introducing broker can be an individual or a legal entity e.g. a company. It is not mandatory that all its activities are related to financial services, but its main task is to attract customers – profitable traders, money managers, investment advisors, and high-income generating website owners, to the brokerage company. How to become an Introducing broker To become an introducing broker, you do not have to acquire any special license or document. Nor do you have to pay any special fee. All you need to have is a finance practice, particularly in the forex space, and possessing a strong online presence. This is because your potential clients are from the network of active followers. An interested customer base with certain initial capital, interest in alternative forms of investment, and a desire to trade independently, and invest in various financial markets are what an introducing broker needs. Also, an introducing broker needs to have top-notch communication and social skills as they are the crucial pillars of modern-day marketing. Functions of an Introducing Broker As independent agents that they are, they help to: Attract clients to trading platforms of partner brokers. Motivate clients to trade actively. Accept orders from clients to conclude exchange transactions. Work directly with end customers by providing thorough aid to customers e.g. filling documents, technical help, training, and advisory roles. Organize marketing strategies and activities to attract many potential traders as possible. Provide successful clients with recommendations for investor accounts within the framework of trustworthy management. Benefits of being an Introducing Broker The following can be noted as advantages of being an introducing broker: No upfront investment: it is a business that needs little to no initial or continuous investment, to start up or maintain. No office needed: an introducing broker can work from anywhere around the world, all that’s needed is good internet and a laptop. Possibilities to get wages independently: introducing brokers receive a reward for each client that is attracted. Increased prospect for entrepreneurial growth: being an introducing a broker is a good way to refine your entrepreneurial skills. This is because the platform allows you to earn money by solving the trading needs of diverse clients using your skills and technology. Hence, introducing brokers can accept job roles in marketing, customer relations, public relations, and financial services. Freedom: being an introducing broker implies that you do not have to be restricted to the 9-5 job life. Hence, you can take on other job roles without risking your trading business. The job of an introducing broker offers more flexibility. With your special trading method, you can offer value-driven services to your clients through your broker’s platform. A cost-effective way of generating revenue: being an introducing a broker also requires little to no financial investment. All you need is to only build a solid community of active followers and have decent knowledge about the operations of the forex financial market. Also in carrying out your functions, you do not need to purchase promotional tools and materials since the broker already assign them upon registration as an introducing broker. Provision of multiple ways to boost profit: One of the bonuses of being an introducing broker is that your profit can be made from a variety of earning models. The only thing you would need to activate these bigger earnings is to properly grasp the dynamics of the marketing structure. This is because they earn commissions based on the number of impressions and clicks on the links used in client sourcing. ALSO READ: Small business -6steps to create a successful marketing plan