How Do I Become an Introducing Broker?
For those interested in the opportunities offered in the forex market, a common question is how to become an introducing broker? Before we jump into our guidelines, it’s important not to forget that many established brokers started off as introducing brokers themselves (also known as IBs). Although you can ask each broker what got them to where they are, and you’ll find different paths in each case, we feel the most important point is that at one time they decided to throw their hat in the ring and give the business a go.
By deciding to become an introducing broker, you are essentially establishing your own business, meaning that the amount of effort you exert will determine your salary. Whether you wish to earn some side income, or turn this into a full time endeavor, it should be approached the same way any entrepreneur would asses a new venture. To help you along this path, we offer 3 helpful tips.
Focus on Local – Technology has now made it possible to truly tap into local networks, especially using social media tools like Facebook, and even Instragram. The ad space on Facebook is still reasonable although to start it’s not even needed, as you can often grow a following by simply offering unique content. But this goes beyond just Facebook. Your community might have local investment groups, and if they don’t, you can be the first to start one. Consider your own hobbys as well. Car clubs, sporting groups, and poker clubs are just a few examples of places to start.
What’s Your Edge? – Think of what initially attracted you to trading. Were you trading stocks but wanted something different? Did you like the opportunity that leverage trading offered? Were you interested in developing a trading system? Whatever it was, remember that others share your same passion and make that your edge. Perhaps you are interested in technical analysis. There’s nothing stopping you from offering your own take on the market. If you like trading systems, your IB business can focus on systems development or EAs.
Experience & Education – The more you learn about how the FX market works, the better you’ll become as an IB. Thanks to the internet, there is a plethora of free information and many detailed e-books that are either free or cost no more than $5 or $10, a small investment with great return potential. Remember that many analysts at FX firms are part time traders themselves, meaning there is no reason why you can’t turn your passion for trading from a hobby into a business.
Due to Atomiq Consulting’s extensive network of brokers, fin tech firms, and liquidity providers, we are able to offer competitive IB packages to our clients. In addition, we can help you establish a white label or even launch your own brokerage. To learn more about becoming an IB, what is an introducing broker, or any of our services, don’t hesitate to contact us.
Have a look at some of the additional services our clients have found to be helpful in the growth of their business.