Introducing Broker ( IB )5 min readReading Time: 2 minutes
Introducing Broker is used a lot nowadays. The term broker first appeared in 1355 and entered the English language. It would not be wrong to say that the term has become quite popular in recent years.
Especially with the development of the digital banking sector and the innovations experienced, the interest in this field has intensified. Today, the term is most commonly associated with the forex market. Let’s take a closer look at this term.
What is an introducing broker?
An introducing broker, a.k.a. IB is an individual acting as an agent who enables interaction between a client or a new trader and a bigger brokerage firm like The Kingdom Bank.
They generate commission fees through this engagement according to the volume of the trader they introduced.
The mentioned commission is paid by the brokerage firm accordingly therefore, it is in the best interest of an Introducing Broker that the trade achieves profitable investments. The more profit generates, the bigger the commission gets.
What does an introducing broker do?
The course of activities that an introducing broker has may vary. But they are supposed to have a long-lasting relationship with their clients.
They can provide educational courses, face-to-face training in the forex market, and cashback options. They can advise on investment options.
In any case, ıntroducing brokers help traders to earn from the investments as much as possible because the commission they are going to earn is decided according to the profit of the trader.
Introducing Broker vs Affiliates
Introducing Brokers and Affiliates have a common ground in terms of directing clients or new traders to a more institutional brokerage firm and getting paid for this. Let us see through differences;
The main difference between an IB and an affiliate is how they get paid. Most of the time, IB starts earning its part from the very beginning. There is no need to wait for a specific timetable.
Because they generally benefit from rebates which is a shared commitment from the brokerage firm charges. Another advantage is that an IB has no limit on how much they earn.
Besides those, ıntroducing managers almost always contact the clients directly and are able to offer special services.
Affiliates, on the other hand, have a CPA payment plan. CPA stands for “Cost per Acquisition”.
They will get a fixed fee for introducing a new client if the client can meet the necessities that the brokerage firm fixed.
In the CPA payment plan, the payments will occur once a month according to the previous activities.
Moreover, affiliates don’t have to meet the client personally or interact directly, they can promote new clients through their website without offering any specific service.
How to become an Introducing Broker?
The Kingdom Bank offers a great deal to those who want to become an IB. You can visit the website and participate in the program.
You can benefit from an exclusive package and enjoy profitable returns. The program is well-designed with professional knowledge, which enriches your potential.
You can improve your skills and broaden your capacity while fulfilling expectations in such a competitive market. Sign up now