With over $5 trillion traded a day before Forex market is not only the largest but without question the most popular financial market in the world. Until recently this market was outside the range of the retail trader due to a high barrier of entry. Today there are Forex Brokers located in jurisdictions all over the world offering a variety of services. New client acquisitions are done by two means first to bring in the client directly to the broker through marketing and sales and second by using a Forex Introducing Broker.
Forex Introducing Brokers come in all shapes and sizes and more importantly from all countries. An Introducing Broker offers their clients services that they need to help in the process of opening and funding a Forex brokerage account. These Forex Introducing Brokers have a unique and special relationship with their clients and also have their client’s trust. From the Introducing Brokers perspective it is very important that they use a Forex Broker that is in us in a regulated jurisdiction. This adds a level of trust for the Forex broker as well as for the introducing broker’s clients.
Here are some of the requirements that many regulated Forex Brokers would have for introducing brokers.
First of all the introducing broker would have to fill out the application of the Forex broker to make sure that all of the criteria to open an account are met and completed.
Second of all the introducing broker would come to terms with the broker as far as their structure in the payouts for the transactions on their clients.
And third of all the introducing broker would have to advise the Forex broker or notify them how they intend on acquiring their new accounts or how they have acquired their accounts if they already are in business.
For example the introducing broker may be someone who gives seminars, has his own blog and holds a following and he’s looking for a broker for his clients to do business with. The Introducing Broker will be compensated for introducing the clients to the Forex Broker.
Another example of an introducing broker as earlier mentioned maybe someone in a specific country where their clients need a great deal of language support in order to understand the process of opening an account and trading an account.
As you can see the role that the Forex Introducing Broker plays a critical one in helping the Forex Broker expand their markets and to be able to properly communicate with their clients.
To learn more please visit www.clmforex.com
Disclaimer: Trading of foreign exchange contracts, contracts for difference, derivatives and other investment products which are leveraged, can carry a high level of risk. These products may not be suitable for all investors. It is possible to lose more than your initial investment. All funds committed should be risk capital. Past performance is not necessarily indicative of future results. A Product Disclosure Statement (PDS) is available from the company website. Please read and consider the PDS before making any decision to trade Core Liquidity Markets’ products. The risks must be understood prior to trading. Core Liquidity Markets refers to Core Liquidity Markets Pty Ltd. Core Liquidity Markets is an Australian company which is registered with ASIC, ACN 164 994 049. Core Liquidity Markets is an authorized representative of Direct FX Trading Pty Ltd (AFSL) Number 305539, which is the authorizing Licensee and Principal