An Introducing Broker (IB) acts as an intermediary between a broker and potential clients. The role of an IB is to introduce clients to a broker, and in return, the IB receives compensation based on the trading volume of their referred clients. The compensation is typically commission-based and can vary depending on the broker and the volume of trades made by the referred clients. This arrangement can offer a profitable and flexible way for individuals or companies to build their own business.
How does an Introducing Broker (IB) earn money?
An IB earns money through commissions and/or rebates generated by the trading activity of the clients they refer. For instance, if an IB introduces a client to a broker like Axi, they will receive a portion of the commissions that come from the trades made by that client. The more clients an IB refers and the higher their trading volume, the more the IB can earn.
Who can become an Introducing Broker?
Anyone can become an Introducing Broker, whether they are an individual, a group, or a company. This makes the IB role a flexible opportunity for various business models, from solo entrepreneurs to larger partnerships or corporate entities.