What is an Introducing Broker (IB)? A Risk-Free Way to Make Money in Forex!
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    What is an Introducing Broker (IB)? A Risk-Free Way to Make Money in Forex!

    One of the most popular marketing strategies in the business world is to pay a commission or offer a discount to a client to bring a new one. In the world of forex, this middle-man is called Introducing Broker (IB), which could be clients themselves or even a company whose only business is to introduce brokers to new clients. Here, we are going to take a look at the concept of IB. Then, we will tell you why you should consider being an IB and how you can do it. After that, we will review the benefits of IB programs from an IB’s point of view and also a trader’s perspective. If you want to find a new way to make some extra cash from the forex market, keep scrolling!

    What is an Introducing Broker (IB) in Forex?

    The word IB in the forex terminology is short for Introducing Broker. It refers to a person or a company that makes new clients for a broker in exchange for a commission or a discount. IBs also try to maintain the broker’s current clients. In fact, one of the things that IBs do is to make it easier for clients to trade through the broker. It is important to understand that Introducing Brokers do not directly engage in executing any trades for clients.

    Different brokers offer different kinds of Introducing Broker (IB) programs. Some brokers invite every client to play an IB role and receive a discount on their trade costs; some others cooperate with Introducing Broker (IB) companies and pay them a commission on the trades of every client they introduce to the broker.

    Since the amount of discount or commission that IBs receive is directly connected to the number and size of trades the referred traders execute, Introducing Brokers usually try to keep the traders motivated by providing them with training materials and courses, ongoing support, etc. In fact, for every trader who leaves the broker, the IB loses a portion of their discount or commission.

    What are the Roles of an IB?

    Now that the concept of Introducing Broker (IB) is clear, it is time to explain what exactly an IB does and what the roles and responsibilities of an IB are. While there are differences between Introducing Broker programs among brokers, there are common roles and responsibilities that we can mention here.

    • Acquisition of new clients: Based on what has been told so far, it is obvious that the main job of an Introducing Broker (IB) is to introduce a broker to new potential clients in an attempt to persuade them to open a trading account in the broker and start trading.
    • Supporting and training the referred traders: As we mentioned earlier, as long as the referred traders stay with the broker and keep trading, the IB gets its share.While IBs receive their commission regardless of the results of the trades executed by their referred traders, it is critical for IBs to help their referred traders to succeed. That’s because the traders need motivation to continue trading through the broker and what motivation is better than making profits constantly? So, Introducing Brokers try to not only facilitate the trading process for traders through constant support and answering their questions, but also keep them motivated by educating them and helping them to be successful traders.
    • Marketing: The methods that IBs use to attract potential traders to the broker is up to IBs themselves. Normally, a professional IB promotes the partnered broker through different channels such as email marketing, social media, in-person marketing, streaming platforms, etc.

    To make the roles of an IB clearer, it is not a bad idea to also mention things that you should not expect an Introducing Broker (IB) to do, and here they are:

    • Trading advice: While IBs are free to provide their referred traders with education and even administrative support, they are not allowed to offer any trading advice (i.e., trading signals). All the trading decisions should be left to the traders themselves.
    • Executing trades on behalf of other traders: While in some brokers, IBs could also be traders themselves, they are not allowed to execute trades on behalf of their referred clients.

    Why Become an Introducing Broker (IB)?

    Whether you’re a casual IB or running an IB company, it is a smart way to make money without risking your funds. Here are some of the main advantages of being an IB:

    • Reduction in your trading costs: In some brokers, traders are offered to receive discounts on trading fees (such as commissions, spreads, etc.) against bringing new clients.
    • Making money: Some brokers pay commissions to IBs for every trade executed by the referred traders.
    • Flexible job: Being an Introducing Broker (IB) can be a fully flexible job. You can do it regardless of your location or the time of the day. The only thing you need is a computer and an internet connection!

    How to Become an IB?

    Becoming an IB is a great way to make money or decrease the costs of your trades in the forex market. If you want to trade in forex and you haven’t chosen your broker yet, it is a good idea to compare different brokers in terms of Introducing Broker programs (in addition to more important things like regulatory, reputation, spreads, commissions, etc., of course!). Many forex brokerages allow you to both trade and play the roles of an Introducing Broker (IB). They offer you a commission or discount for every trade executed by your referred traders.

    If trading is not your cup of tea but you think you are a persuasive person or a capable marketer, you can consider being just an IB. This way, you do not need to risk your money, but you can make money by receiving commissions. The only thing you need to do is to motivate people to open trading accounts in the broker(s) you work with and persuade them to trade as much as possible.

    The third option is to establish a company that works only as an introducing broker. Clearly, it needs more resources, expertise, and experience than the over-mentioned options. If you are thinking of starting your own business in the financial world and you are both familiar with forex and marketing areas, founding an Introducing Broker (IB) company is a great way to make tons of money.

    Best Introducing Broker Programs

    As mentioned earlier, there are various IB programs offered by different brokers. Each program has its own pros and cons, and if you are considering becoming an Introducing Broker (IB), you need to find a program that suits you better. Here, we are going to review some of the best IB programs out there. Keep reading!

    1- XM Partnership

    XM partnership is an Introducing program offered by XM broker, which happens to be one of the best brokers in the forex market. In this program, an IB is paid up to 25 dollars per lot their referred traders trade. XM broker pays the IBs through different methods, such as crypto (USDT), Stickpay, Skrill, etc., on a weekly basis. It also offers a Cost Per Acquisition (CPA) plan in which the IBs are paid up to 650 dollars per each client they bring.

    xm partnership IB program

    2- Eightcap Partners

    Eightcap Broker, a popular and trusted broker in the forex market, offers an Introducing Broker (IB) program called Eightcap Partners. In this program, IBs are paid up to 6 dollars per lot for each trade executed by their respective traders. It also has CPA and revenue share plans. The payment methods are Skirll, USDT, and Bank Wire.

    3- ITB Broker IB plan

    Another great IB program for you to join is the ITB Broker IB plan. At the time of writing this blog (2024), ITB broker is trusted by more than 250,000 traders around the globe, and more than 5000 Introducing Brokers participate in its IB program. The great thing about this program is its constant 24/7 support and its flexible plans. In addition, the number of referred traders of yours is not limited. The commission that is paid to any IB per each trade executed by their referred clients depends on the plan. It also offers an amazing consultant to help the IBs make as much money as possible.

    ITB Inroducing broker (IB) program

    What are the Benefits of IBs for Traders?

    So far, we have shed light on the concept of IBs and their roles in forex. We also explained why you should consider playing an IB role in one of the most liquid financial markets in the world and how to do it. Now, it is time to take a look at the concept of IB and its benefits from a trader’s perspective. If you don’t want to be an Introducing Broker (IB) and you just want to trade in forex, you should still know about IBs and the benefits of opening a trading account in a broker through their referral or joining a rebate program in your current broker.

    Advantages of Opening an account through an IB's referral

    As we mentioned earlier, the main role of IBs is bridging traders and brokers together. They also try to persuade the traders to stay with the broker and continue trading. So, Introducing Brokers provide services to traders such as ongoing support and education. This not only increases the chance of traders staying with the broker and trade more, but also works in favor of traders. In fact, if a trader opens a trading account through an IB’s referral, they probably receive constant support and training from their IB.

    Another benefit of registering with a forex broker through an Introducing Broker (IB) is the possibility of joining a rebate program. A forex rebate is a marketing strategy used by many brokers to encourage traders to trade more. As mentioned earlier, brokers pay a portion of the referred traders’ trading costs, including spreads and commissions, to the referring IBs. The IBs then allocate part of this commission to their referred traders to motivate them to keep trading with the broker. In this scheme, the trader pays money to the broker in the form of spreads, commissions, etc., the broker gives some of this money to the IB as a commission, and the IB gives some of this commission back to the trader. Joining a rebate program in forex means lower trading costs for traders.

    IB advantages for traders

    Conclusion

    In this blog, we reviewed the role of Introducing Brokers (IBs) in the forex market. Working as an IB is a great way to make money in forex without risking anything. Essentially, IBs act as marketers who bring traders and brokers together. It is a completely flexible job that anyone can do as long as they have an internet connection. If you want to participate in one of the best Introducing Broker programs, consider the IB plan offered by ITB broker.

    From a trader’s perspective, registering with a broker through an IB’s referral offers several benefits, including receiving support and training from the Introducing Broker (IB) and reducing trading costs by joining a forex rebate program. If you have any questions regarding ITB broker’s IB and rebate programs, do not hesitate to contact us!

    The main role of an IB is to present a broker to possible clients. In addition, IBs usually try to encourage their referred traders to stay with the broker and trade more by providing support and training.

    There are no risks related to working as an Introducing Broker (IB) in the forex market. In fact, to work as an IB, you don't need to engage with trading and its risks.

    If a trader registers with a broker through an IB's referral, not only they benefit from the possible support and education offered by the Introducing Broker (IB), but also they can participate in the rebate programs of the broker.