Kamis, 22 Desember 2016

How do you start your IB business?

You have decided to open your introducing brokerage business! You’ve figured out how to get clients, how to market, and are almost ready to go. The only question is – to which MT4 broker should you send your clients?
Picking which broker you send your clients to is one of the most important decisions you will make for your introducing brokerage business. There are many factors to consider, and it is important you pick a broker partner that will meet both your needs and your clients. While the commission and rebate is important, many new introducing brokerages focus on exclusively, and neglect the other factors that are important in picking a partner. Here are four things to consider before you decide which brokerage to send your clients to.
Rebate/Commission
The most important consideration is the rebate/commission that the broker will pay you on your clients. There are multiple different rebate structures available throughout the market, but the most common structure by far is payment based on volume. The commission paid per trade can vary greatly by broker to broker. Generally speaking, smaller and newer brokers are going to have more flexibility on giving a higher payout then more established brokers. More highly regulated brokers (Cysec and FCA regulation, for example) may not be able to take certain clients, and may have more stringent rules about how high the payouts to introducing brokers can go. The smartest strategy is to talk to multiple different brokers to find out what the range of rebates are in the market.
Brokerage Technology
The next thing to consider is what type of technology the brokerage offers you and your clients. Will you be given access to a CRM that allows you to track your clients? Does the broker offer a PAMM for you to easily manage client funds? These are important questions that will impact how much work you have to put in your day to day business management.  Before you make a decision about which broker to use, request a demo environment of their CRM so you can get an idea of how it works in real time.
Geographic Reach
It is important that your brokerage has the tools needed to successfully on-board and receive payments from your clients. If you are going to be targeting clients in South East Asia, then making sure your broker accepts Fasapay is important. Same story with China, if your brokerage doesn’t accept Unionpay, it won’t be a good fit for you clients. Beyond payments, it is important that your brokerage partner has the language support for your target region.
Trust
How long has the brokerage been in business? Do you know the owner? What do the reviews online say? Have you traded with this broker before? What are their withdrawal policies? These are all important questions you need to ask yourself or the brokerage.

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