Forex introducing broker (FX IB) is an intermediary between a Forex broker and future traders. By and large, IB acts as a marketer. Their task is to attract new customers (leads). Of course, the challenge of finding new leads is not easy, as FX trading involves risks. IB should be able to explain to novice traders that currency exchange is a profitable activity, and if the strategy is correct, then they can count on a stable income with minimal losses. The most difficult thing for a trader is to find a reliable broker. This is exactly the task that FX IB takes on. Using a referral link, the introducing broker connects the client with the AvaTrade broker, who, in turn, offers:
- •
competitive spreads;
- •advanced platforms;
- •a set of necessary tools;
- •fast software operation;
- •reliable cooperation, etc.
FX IB is interested in the trader trading currency on the AvaTrade platform for as long as possible because, in this case, IB can receive additional profits. If you are committed to long-term cooperation under the affiliate program (AP), then you can choose a payment model under which you will receive a portion of the trader’s income. Interestingly, when choosing an AP, you can change the conditions, in which case an individual commission structure will be established. On AvaPartner, you can also get a personal manager who will advise you and help in case of problems. You can find a library of marketing materials on the site to understand how you can attract more customers.
Searching for New Traders
You need to prepare for the fact that the influx of new leads will not be immediate. You’ll have to expand your subscriber base so that more people can see your message. If you are an FX IB, you definitely need to understand AvaTrade’s products in order to have an idea of which platforms are available and what advantages and disadvantages they have. Be prepared for the fact that novice traders will ask you a question: “Which platform is more suitable for me?” In this case, it is better for you to provide statistical data and convince the applicant that a particular product is suitable for them. Of course, it’s better for you to have personal experience trading currencies on AvaTrade. This is the only way you can thoroughly understand how the platforms work.
Information about Forex Trading
If you are an FX IB and you are a blogger, celebrity, or just have a lot of subscribers, then you should inform your audience that CFDs are currently being traded on FX, rather than transactions with real currencies. CFDs are contracts for price differences. In simple words, a trader opens a long position if they are convinced that the exchange rate of the quoted currency will rise. If their forecast is correct, they make a profit; if not, they lose part of their funds. To minimize losses, one should use only reliable currency pairs, such as USD/JPY, EUR/USD. These are major currency pairs because they include the US dollar. There are also cross pairs in which the dollar is missing, for example, EUR/JPY, EUR/GBP. There are also exotic currency pairs, but IB shouldn’t recommend them to beginners.
Forex Introducing Brokers as Coaches
FX IBs can act as coaches if they have enough knowledge and experience. They suggest that the trainee not risk their finances, but register on the broker’s website, open a demo account, and try trading with conditional money. In most cases, such training has a positive impact and provides the trainee with a lot of practical knowledge. A novice trader can see that it is quite easy to make money on CFDs; the main thing is to make the right decisions and guess currency quotes. IB can prompt the trainee in real time using remote access software. Such classes can be individual or collective. If the test session turned out to be profitable, then the trainee is highly likely to make a deposit and try real currency trading. FX IB can also act as a trading advisor to help the trainee make the right decision. To do this, IB needs to be able to work with MAM accounts. IB can guide a novice trader and tell them about several effective strategies that can be used to make money over a long distance. It is beneficial for IB that the trader who clicked on their referral link uses the services of the AvaTrade broker as much as possible, since in this case, IB receives increased commissions.
Brief Conclusion
Forex Introducing Broker enters into an agreement on the AvaPartner website and becomes an affiliate of the AvaTrade broker. Now, the goal of FX IB is to find new clients who can become traders and bring passive income to IB. IB uses various methods to attract new leads, focusing on the subscribers. IB can provide useful information, consult, and give strategic advice to a trader. If the person clicks on the referral link, IB receives an instant payment or a percentage of the income, depending on the chosen payment model. An individual or an organization can become an IB.
