Introducing broker financial definition of Introducing broker

An application fee for principals and APs is not required if the individual is currently registered with the CFTC in any capacity or is listed as a principal of a current CFTC registrant. Only one application fee is required if the individual is filing an application as both an AP and principal. The FCM uses its capital to “guarantee” the operations of the IB as well as oversee compliance. Client accounts with GIBs are backed by the capitalization of the FCM, not the IB. Computer-based systems such as those used by TV are inherently vulnerable to disruption, delay or failure.

Charles has taught at a number of institutions including Goldman Sachs, Morgan Stanley, Societe Generale, and many more. Quotes, news, research and information accessible through TV (“Information”) may be prepared by independent Providers. The Information is the property of TV, the Providers or their licensors and is protected by law. Customer agrees not to reproduce, distribute, sell or commercially exploit the Information in any manner without written consent of TV or the Providers. None of the Information constitutes a recommendation by TV or a solicitation to buy or sell.

introducing broker

Make sure you have all the paperwork and the right credentials before you begin. Building a reputation requires trust and accountability on both sides is key. If you have a common name like John Smith , consider using a more distinctive name that Google will immediately hone in on.


Fill in the requested fields regarding your personal information and trading expertise to complete Client Area registration. Access our intuitive IB room with advanced fund and account management tools. It looks like you are physically located in the EEA, therefore if you would like to proceed with Tickmill UK Ltd, please confirm this decision has been made by you independently without any marketing or solicitation by Tickmill UK Ltd.

An introducing broker is an individual or organization that solicits or accepts orders to buy or sell futures contracts, forex, commodity options, or swaps but does not accept money or other assets from customers to support these orders. IBs must carry all forex and futures accounts, including customer, proprietary and foreign futures, with a futures commission merchant or retail foreign exchange dealer on a fully disclosed basis. A person or business that provides investing advice or counsel to an investor, but does not actually handle transactions.

  • Access our intuitive IB room with advanced fund and account management tools.
  • This is the case in the United States, in which Introducing Brokers are required to be registered with the NFA, in order to be able to solicit the enterprise of US residents.
  • The arrangement allows for specialization where the IB focuses on the client while the FCM focuses on trading floor operations.
  • You need to be 18 years old or legal age as determined by the laws of the country where you live in order to become our client.
  • This Agreement (“Agreement”) governs the relationship between Customer and Tradeview Ltd. (“TV”).

Therefore, an affiliate will receive only a few details regarding the activities of those who signed up under their affiliate link. This leaves the brokerage itself as the one responsible for fostering a relationship with the purchaser, with the affiliate simply attracting business. This often means it is much easier to become an affiliate than an Introducing Broker, as a brokerage has to do less to check the suitability of the person promoting the brokerage. The content on this website is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. Fully Disclosed Brokers can create multiple tier accounts by adding Registered Advisor, Non-Professional Advisor , Proprietary Trading Group Separate Trading Limit and Multiple Hedge Fund master accounts to their broker account structure.

These gifts frequently vary, however it is not uncommon for Introducing Brokers to offer traders premium Expert Advisors, books and other trading resources, all in an effort to keep traders trading with them. In commodities markets, an introducing broker is an intermediary who takes orders for futures contracts but passes on responsibility for executing the orders and handling the financial arrangements to a futures commission merchant . However, reputable registered brokers are choosy about who they accept as introducing brokers. If you want to build a business relationship with brokers – and traders – you will need some kind of professional credentials or an established reputation to be an IB.


You should consider whether you understand how over-the-counter derivatives work and whether you can afford to take the high level of risk to your capital. Investing in over-the-counter derivatives carries significant risks and is not suitable for all investors. StoneX offers full service futures and options on futures as part of our Integrated Risk Management Program (IRMP®) and for self directed experienced futures and options traders through our Futures Direct Division. StoneX provides institutional clients with a complete suite of equity trading services to help them find liquidity with best execution and end-to-end clearing. StoneX Financial Ltd specializes in transferring funds to the developing world and provides customized foreign exchange and treasury services to customers worldwide.

introducing broker

Do you have access to a network of existing or potential traders? Become an introducing broker, an independent agent that will be referring new clients to us, convert your influence into an on-going income and earn up to $10 per traded lot. Introducing Brokers earn commission based on the volume traded by their clients, which means they want their traders to achieve success in ensuring that they maintain to earn commission. This means that many Introducing Brokers will provide free gifts to those who have opened trading accounts below them.

The Customer understands you shall be entitled to exercise and enforce directly against the Customer all rights granted to the Introducing Broker. The Customer understands that you are not a principal of or partner with, and do not control in any way, the Introducing Broker or its representatives, employees or other agents. View of your top 20 customers, letting you identify and nurture star performers. We deliver support, technology and service designed and delivered for your success.

What is anIntroducing Broker or IB?

It may be worth trying to negotiate fixed spreads or cashback deals for high volume clients. The bottom line is that if you’re making money for a program as an, you can be assertive and request better resources. Read and stay up to date on the financial news daily and where stocks, commodities, currencies, and other vehicles are heading. If clients feel that you are well-informed, they will respect your judgment and have faith in your advice. This will benefit you as an introducing broker and the brokerage you are promoting.

introducing broker

However, TV reserves the right to require Customer to close Customer’s account. To receive electronic mail from TV, Customer is responsible for maintaining a valid Internet e-mail address and software allowing customer to read, send and receive e-mail. Customer must notify TV immediately of a change in Customer’s e-mail address by using those procedures to change a Customer e-mail address that may be available on the TV website.

Request Access to NFA’s Online Registration System

Think in terms of podcasts and YouTube videos, trader eBooks, a regular financial column, blog posts and guest posts. If you can build a genuine following on Facebook, Instagram and Twitter, you’re already one step ahead. A popular YouTube channel is an even more powerful marketing tool for Forex introducing brokers.

If the offer looks good and you have examined your options, you may want to partner up or look around a bit longer for the right fit. IBs allow FCMs to do business on a local basis while using the FCM’s infrastructure for trading. Hans Daniel Jasperson has over a decade of experience in public policy research, with an emphasis on workforce development, education, and economic justice. Established in 1991 as a non-profit association, NIBA helps members find greater success in the derivatives industry through education and networking while providing members with a voice in regulatory and industry matters. Introducing Brokermeans persons within the meaning set forth in Section 1a of the CEA and within the definition of ‘foreign broker’ set forth in 17 C.F.R. 1.3.

introducing broker

Not only do you need to reach new clients, but your name needs to be ‘Google Gold’. Put simply, if a potential client Googles your name, they need to see a list of positive and powerful returns that immediately portray you as a credible financial commentator. What you’re basically doing is creating a personal brand and marketing yourself. If you can think strategically and work systematically, you can develop a high-value online presence.

Understanding Introducing Broker (IB)

Futures trading involves the substantial risk of loss and is not suitable for all investors. We offer bespoke solutions to partners of every size and structure, from local call centres to trading academies, from social media-focused individuals to mass media marketeers. Introducing Brokermeans a person which is remunerated by the Company and/or clients for referral of clients to the Company and/or for provision of advice to such Clients and/or execution of such Clients’ transactions towards the Company.

Benefits for your clients

Upon death of any joint holder, the account shall be vested in the surviving holders, without in any manner releasing the deceased joint holder’s estate from liability. Introducing Brokers (or IB’s) are brokers or firms that have customers interested in OTC instruments, but who cannot provide these products directly. Rather than being limited to offering exchange-traded products only, IBs can take advantage of StoneX Markets’ swap desk capabilities. We earn our IB customers with our high-touch customer service capabilities, strong balance sheet, onboarding ability and SXM’s initial and variation margin thresholds , which can act as financing. If you want to earn high commissions as a successful introducing broker, you need to develop an online presence.

An introducing broker advises clients in the futures market but delegates trade execution and back office operations to others. StoneX offers risk management services with several levels of service, each customized to the needs of your company. We also offer Investment Banking services to clients and strategic investors. StoneX offers comprehensive clearing and execution services to customers across the world. An Introducing Broker is fundamentally an agent which introduces new clients to a Forex brokerage. In return for sending custom to a brokerage, the Introducing Broker receives a fee, with regards to Forex this is usually a certain promotion of the Spread or Commission charged by the brokerage.

If the introducing broker maintains an omnibus account at the clearing firm, the introducing broker will be required to send customer confirmations and statements. In order to pass the series 24 or series 26 exam you must have a comprehensive understanding of the roles of the introducing and clearing broker dealers and their net capital requirements. All of this information is covered completely in our series 24 and series 26 exam prep software, textbooks and video training classes. Make sure you are ready to pass your exam with our Greenlight exam pass guarantee. Trading over-the-counter and exchange-traded derivatives is not suitable for all investors and involves substantial risk. StoneX Markets, LLC (“SXM”), a subsidiary of StoneX Group Inc., is a member of the National Futures Association and provisionally registered with the U.S.

Find third-party, institutional-caliber research providers and access research directly through Trader Workstation . Apply client fee schedules to individual accounts or store them in templates. Set up enhanced user access and account security by creating one or more Security Officers for the master account and designate up to 250 users by function or account. A turnkey solution for Prime Brokers covering trading, clearing, reporting, and billing – with no long-term contract required.

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