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How to Run a Successful Introducing Broker Program

Many users mistakenly think that an introducing broker program works similarly to the Forex affiliate model. In reality, a Forex IB program is a different approach that provides more flexibility to those involved in financial markets and eager to build a steady and often passive income.

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Affiliate marketing and Forex IB have the same goals, which are to bring as many users to a partner platform as possible and earn commissions. However, the approaches are quite different. Being an IB means being a promoter of a specific brokerage house delivering its products and services to the target audience.

Different ways of partnership appear to be the most rewarding interaction methods in many fields today. At the same time, each business requires niche-specific approaches and promotion tools to drive more clients to the partner.

Today, we will discuss the difference between affiliate programs and Forex broker partnership as well as ways to run a successful Forex IB program.

The Difference between an Introducing Broker and Affiliate

Initially, both counterparties seem to have common goals and tools to achieve them. The main mission is to bring as many new clients to the platform as possible. In reality, the two approaches work differently:

  • Affiliates’ main task is to distribute the key message to the target audience. They use websites, social networks, and other popular channels to promote this message. In other words, they are closer to traditional marketers.
  • An introducing broker is a mentor. His main mission is not just to promote the brand but also to deliver peer-to-peer support to those who only get started. The key to success here is to establish a long-term relationship between a Forex IB as a consultant and the potential client. If a customer eventually starts trading, an IB earns commissions. The more successful his wards are, the higher commissions IB trading helps to generate.
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To make things even more simple, an IB is interested in providing full-scale support while an affiliate acts more like a promoter. When the goal is achieved, affiliates do not care about what happens next to the user. The good news is that affiliate marketers always have a chance to extend to an introducing broker.

Common Reward Models in the Forex Broker Partnership

Of course, being an IB is not about helping others for free. Every action is made to generate rewards and extra revenues delivered by the IB trading platform through commissions and payouts. Here are some of the most popular reward models partners can select from.

1. Cost Per Acquisition (CPA)

It is a widely spread marketing strategy used by different businesses. Partners are paid every time a client is “activated”. When we say “activated”, we mean a user clicks on a link or banner, opens an account, follows the ad to a target page, and so on. So, in the CPA model, a partner’s main goal is to make a user complete an action and trigger the reward.

This reward model is a tough one. Affiliates need to take much effort to keep potential customers engaged all the time. The good news is that CPA is one of the most profitable commission modalities.

2. Cost per Lead (CPL)

Another popular reward model is where a partner is getting paid for every lead he or she generates for the IB trading platform. The commission is paid once a customer has filled out a dedicated form or completed the registration process. The rest is the sales team's responsibility.

3. Rev-Share Model

A revenue-share model is a commission arrangement when a partner receives a percentage of the commission on a successfully completed transaction. Besides, the level of reward in this model relies on how active a referred customer is. In simpler words, the more clients trade, the higher commission an introducing broker gets.

The arrangement offers three different types to choose from:

  • A fixed reward per every lot traded by the client.
  • A percentage of the overall commission.
  • Pips per lot.

The most advanced IB Forex partnership programs provide multi-level systems. These multi-tier approaches make it possible for IBs to recommend services not only to clients but also to their affiliates. As a result, you can grow a huge network that generates steady income 24/7.

How to Run a Successful Forex IB Program?

The key to success for any IB trading platform is to provide partners with as many efficient tools to engage with the audience as possible. Otherwise, there is always a risk of partners leaving one program for a better alternative.

At the same time, much of the success depends on the introducing broker himself. He or she must develop a well-organized system that meets the latest market standards. Customers are seeking customized technical solutions, emerging trading platforms, and instruments that ensure flexible individual deals.

The following steps will help you take your IB partnership program to a new level:

  1. Look for appealing remuneration. As an introducing broker, you want to be adequately compensated. So, make sure an offered reward model meets your needs. Try to count how much you can earn with a given platform and decide if the partnership will make sense from a profit perspective.
  2. Assist your clients. Keep potential customers engaged. Try to grow the platform’s business in the same way as you would grow yours. Do not leave new clients one-on-one with complicated issues. You need to guide them until they are self-confident enough to open their first trades.
  3. Promote your Forex IB program. The key to success is to grow a community of referrals. If you manage to create a network with active traders, you can build wealth. This is where you might need specific promotion tools often delivered by a broker you partner with.

Those who can build the reputation of a trading guru with a set of amazing tools and assets delivered out of the box will become a successful introducing broker with a steady and passive income.

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.