Forex Affiliates and Introducing Brokers

Promoting Forex can be profitable. Being a forex affiliate and an introducing broker is practically the same, just taking it t othe next level so to speak.

Best affiliate programs in the financial sector

Can you truly make enough to get by just by promoting forex brokers? Definitely, and I will show you how to get started.

If you don't want to read my introduction to forex affiliate marketing, that is okay too.

• This social trading affiliate program is probably your best bet amongst the forex affiliate programs.
• Here is another great financial affiliate program which is actually the highest paid affiliate program in the financial industry.
• Here is a complete list of forex affiliate programs.

What is an Introducing Broker?

There are many definitions of Introducing Broker, and its easy to get confused by the various uses of the term.

In reality there are few differences between IBs and affiliates. Often large affiliates get "upgraded" with IB status. Also, big companies and banks might want to operate as an IB instead of an affiliate.

Affiliates will get many or all of the same benefits as IBs, no need to think hard about this. The important thing is to get going and start promoting your partner broker.

What is an Introducing Broker?

An Introducing Broker (IB) directs new clients (customers) to a broker firm. Depending on the broker firm, the introducing broker can work in any financial market stocks, forex, futures, or any other financial commodity.

Some say that IBs work as the middleman, but that's not completely true even though it might seem like it. Rather, they are in a partnership with the clearing firm: They do not execute the trades, rather they call the trading floor at their current broker firm and let them execute the trade.

But what is an Introducing Broker really? An Introducing Broker is an individual or firm which is able to perform all the functions of a broker except for the ability to accept money or securities from the client.

Do NOT Confuse IBs With Affiliates

As an affiliate you would simply refer the clients to the broker firm, while as an IB you would be providing real services to the clients you refer.

Both affiliates and IBs are partners with the broker firm, but they have different roles. For example, as an forex affiliate you could simply put up an ad for some Forex company, and you could make money per refered trader based on a CPA (cost per action) or revenue share model. Affiliates simply refers its clients, and have no real obligations after that. Affiliates can easily automate the process of recruiting, while this is much more difficult for IBs. On the contrary, IBs will usually have to provide services to the clients they have refered. Affiliates are less involved in the services of the broker firm, while IBs use these services as a foundation for the partnership.

How To Make Money As An Introducing Broker?

Introducing Brokers make money by charging their clients with commission, just like other types of brokers. A question you might ask is, why would the client trade through an IB rather than directly with the firm? And here's the key: As an IB you can offer additional services and support, such as training your client and staying in touch with them and they will have their own broker that they could trust and build a personal relationship with. In short, an IB can provide more value in terms of extra services than the commission merchant cannot provide, even if the commission is higher.

The Art Of Making Money As An IB

1. First rule in making money as an IB: If you don't have clients, you won't earn money. No money withouth customers.
2. Second rule in making money as an IB: Get clients that has generates the highest commission. You will need to find what types of clients that makes you the most money. Some IBs spend a lot of time hunting down the "big whales", while other IBs are targeting the smaller rookie traders. While some aim to get as many clients as possible and make a small profit on each of them, others are spending more time finding the ones that make you the biggest commissions. There's no right or wrong here, if you're good at dealing with the "big whales" then that's what you do, and if you're content by providing services for smaller traders then you could do that. What type of clients you approach is not the most important thing here, what's important is how much you can make in commission in total for the time and energy you invest as an IB. You could make $1,000 per day from just one client, or you could make $100 per day from ten clients and the total would be exactly the same.
3. Third rule in making money as an IB: Don't be a crook. As an IB you work as an advisor, sort of. You're not exactly an advisor as your goal is to make money from the commissions you get, and your clients will make money from the trades or investments that they make. This is true for all brokers. For real estate brokers this is a fact as well. While a person that have a house to sell would want the highest prize possible, the real estate broker might just want to push the sale and move on to the next project as quickly as possible. The result could be that the house could be sold for less than what it's actually worth. Such an situation was described in the excellent book Freakonomics: A Rogue Economist Explores the Hidden Side of Everything, in the chapter How Is The Ku Klux Klan Like A Group of Real-Estate Agents?. Brokers have their own interests, and as an IB so do you.
   
   In the marketplace people act like animals. You've heard of bear and bull markets, right? However, just because you're a broker does not make you the right to act like a crook. If you're dishonest to your clients, they will eventually figure it out. Every broker throw in a white lie once in a while, but just don't cross the line. You need your clients.
4. Forth rule in making money as an IB: Whatch the markets all day and learn from what you see. To be an IB you will need a licence. But that's not enough to be successful. You need to watch the market every day. Your clients expect you to be updated about the current situation, and you should always be ready to answer questions about what actions is the best to profit from the current markets.

STEP ONE: Getting Your Licence

Typically, there are spesific requirements that need to be fulfilled in order to work as an IB.

Agreements and identification. You will usually have to fill out an Introducing Broker Agreement and submit it to the broker firm or the commission merchant. A serious firm will also ask for your passport, a Certificate of Incorporation, or any other type of proof of identity.

Licence: Many countries requires that you have a licence in order to perform as an IB. For example, in the U.S. you must be registered in as a FCM, CPO, CTA or an IB with the NFA (National Futures Association) to work as an Introducing Broker. To check if a license is required for your country, consult the respective authorities in your country. If a license is not required in your country you would still need to suhbmit some sort of proof that you could work as an IB, typically Letter of Compliance from a lawyer.

Getting the license may take years of higher education, depending on how much you already know and what knowledge is required. Or you may move to a liberal country where such licences is not required. Anyhow, this is not get-rich quick solution, but rather it's a way to make a lot of money for dedicated people that are willilng to invest their time and energy. There may even be easier ways to make money in the financial world.

If you don't want to go through the hassle of becoming an Introducing Broker, then you might consider becoming an affiliate with a broker firm instead, it could be just as rewarding.

STEP TWO: Find A Bank Or A Broker Firm

When you have your licence (if required), you need to find a broker company to work with. There are probably hundreds of companies to choose from when starting your IB business.

In this guide we're going to use this financial affiliate program. This firm has relationships with affiliates and Introducing Brokers around the world. To become an Introducing Broker with them, all you need to do is submit a few forms and a copy of your passport for identification. It's easy to get started, sign up as an affiliate or IB here.

Also, remember that we're using just FOREX-AFFILIATE as an example here, there are other affiliate programs to use as well. I suggest you take a look at this list of Forex Affiliate Programs and find your favorite.

Anyway, before you continue to the next step, join a bank or a broker firm so that you can get started as an Introducing Broker.

STEP THREE: Take A Look At What They Are Offering

Once inside, take a look what they offer. Things usually seem a little different once they've won you over to their side. You're with them now, but as they know wery well: You have the power to leave any time you want.

In the case of Forex-Affiliate, this is what you get as an affiliate:

• Up to $10,000 per click - Forex-Affiliate.com is the most profitable affiliate program on earth. One single click is all you need to make big money. Just make sure you send good traffic.
• Support and a contact person in the company is there to help and assist you every step of the way.
• Marketing tools and statistics will help you to improve your marketing and campaigns
• High convertion - you will be promoting a financial service, and they convert like crazy.

STEP FOUR: Start Recruiting, Make Money!

Now, let's make money. Start recruiting clients, and make your commission ASAP.

Once you have got some clients, here's what you must do:

• Provide services to your clients, and welcome them to the trading arena
• Help them to open their trading accounts
• Introduce clients to the trading platform

Don't just promote trading, become a trader yourself and understand the market

Trading is a way to accumulate your wealth without really selling anything, except selling the stocks and financial instruments you buy. You don't need to do any marketing.

The great thing about trading is that you don't have to create a website, and you don't have to market anything. Using social broker services online you don't even have to trade! You just copy other profitable traders and that's it. Very easy cash, but be careful as there still is risk involved. Even the best traders can loose money, so what you should do is just invest what you can afford to lose.

Of course you could also do both marketing and trading at the same time (like I do). The benefit is clear: You get to know better what you acutally are promoting, and as a result you will probably make more leads and more money.

Choose Your Payment Structure.

With this trading affiliate program there are two ways to make money. One way is simply to refer clients, almost like an affiliate would do, and you will get your commission. They also have white label solutions. Of the two, traditional affiliate marketing is probably the easiest way to make money, just sign up as an affiliate and you're ready to make money.

Recruitment

• Build Your Website
  For general information on how to building websites, see building websites.
• This affiliate program provides banners and marketing tools for their affiliates. You will have everything you need to get started there.
• Using Your Current Client Base
  Many IBs already have a list of clients. If you can you should definitly use your current client base to expand your client list as an IB. Simply send them an email where you tell them what you can offer them, and give them one or more reasons to use you as their IB.
• Use Your Current Network Of Friends And Family
  Make everyone understand what you do. You are an Introducing Broker. You help people to make more money with their money. Some IBs would argue that it's not a good idea to mix personal life and business, but if you're good at what you do, then why not? The problem is of course if your client — which is also a friend or relative — looses money based on your advice, well then that could create problems and akward situations on a personal level. A good rule for IBs is therefore to work with people you are not closely attatched to in your personal life. You're already risking their money, and it wouldn't be worth it to put personal relationships at risk at the same time. However, friends and family could be a great resource: They could help you to spread the word for you.
• Recruitment Through Advertisements
  To get even more clients you could pay for advertising. Financial newspapers is a great source. You could also promote your website online by using Pay-Per-Click ads.

STEP FIVE: Success Breeds Success

It's one of the most amazing experiences in life when you do one thing right, and suddenly it seems like EVERYTHING goes your way. It's true what they say: Success breeds success.

If you build a huge list of clients, take care of them, and make them good money, then this will make you even more successful. When you do a remarkable job as an IB, your clients will eventually tell their friends and colleagues about you, and getting new clients will seem like the easiest job in the world.

Furthermore, if you do a good job, the broker firm you're working with will notice. They will get you better deals (or at least you will have a much better chance of negotiate better deals).

Success breeds success. Therefore, the better you are at trading, the more money you will make. Educate yourself, and learn as much as you can while you're working. There's always something new to learn that could make you better than you are today.

Work hard, and be determined to succeed. Nothing can stop you now...

Again, here are my personal forex affiliate program favorites:

1. The bestsocial trading affiliate program
2. The best CFD trading financial affiliate network

All these provide high commissions, they have the best affiliate account managers you could dream of. You can literally make millions of dollars here!