A broker who relates directly with a client but gets the operations and execution of trades done through another bigger Forex Broker is usually known as an Introducing Broker or IB. The IB’s affiliation with the broker could be in the form of a partnership or as a subsidiary of the broker.
Becoming an IB, or Introducing Broker, has proven to be the best method to begin with the Forex market business. Where there are a lot of complicated tasks for a full-fledged forex broker, the IB’s job is quite simple in terms of his scope of work. Though it looks simple from the outside, there are a set of roles and responsibilities that an IB has to uphold. Following the intricate responsibilities would get the best results in terms of business for an Introducing Broker.
Let us see some of the roles and responsibilities of an Introducing Broker which will help you to understand what exactly an IB has to do:
1. Act as a bridge between a trader and a Forex Broker:
Like a bridge that connects one end to the other, an IB’s basic aim is to cater to clients and connect them with the parent Forex Broker. As it is difficult to attract clients in this competitive market, the IB may opt for various strategies like website advertisements or social media marketing or reach out to mass clients through BTL marketing. IBs can even have their own website, which traders visit first to get information regarding the parent broker’s available services.
2. Provide proper service to the clients:
The job of an Introducing Broker is not only to connect clients with a parent broker, but he must also learn to provide continuous service and support to the clients. Usually, the main Forex Broker CRM has a strong support team to handle all the client's issues, but the IB should extend his hands to the clients he brought to the broker. In times of need, the IB has to look after their concerns and offer additional support. At the same time, the Introducing Broker has to maintain a strong relationship with the parent brokerage as well. So that all the benefits of the brokerage can be offered to the IB’s clients.
3. Inculcate the clients:
With his and his parent brokers extensive knowledge of market trends and trading skills, the IB should educate his clients in their journey of trading in the market. It falls under IB’s job to make clients aware of market statistics, the latest trends, and possible risks in the field. It would be beneficial for traders, especially newer investors who may not have a proper understanding of the financial markets. Based on his market experience, the IB would educate the clients on some of the trading tactics, like when to grab a chance of profit in the trade. Also, some research material would be helpful to the clients if provided by the IB.
4. Nourish their own firm and make it a well-known brand:
Besides extending assistance to its clients, the IB must establish its brand in the forex market. To make the IB firm popular among prospective clients, he needs to market his firm and the services he can offer. The main concern here is building trust among the clients regarding going ahead with a particular IB or IB firm without hesitation. Usually, the traders would be in a dilemma about using an IB's services because of the fear of an IB interfering in their fund management. However, IB is responsible only for connecting a client to the primary broker, and any fund-related activity of a trader should not be his concern.
IBs can be a one-man show or a firm of multiple IBs from various locations. IB firms are becoming popular in the market as they minimize the efforts of a main broker and increase their business capability. IB's main purpose is to satisfy clients with the required services, and the broker's primary concern should be to focus on trading floor operations.
If you are an IB, a broker, or a trader, let us know once and check how Cloud Forex CRM would be helpful in your business operations. Click on www.cloudforexcrm.com or skype us at https://join.skype.com/invite/PDjMZB2m6shc