Can You Become A Forex Introducing Broker?

Any individual or company that has contacts with individuals or other companies who might be interested in trading forex online, either by themselves or through a forex broker can become a forex Introducing Broker.

Below are some typical examples of companies that can become successful forex Introducing Brokers (IBs). This list is not exhaustive, so if you don't see a description of your company type or your personal background, you can check out any forex broker online.

Independent Financial Advisers

Successful Forex Traders

Banks

Insurance companies

Advertising companies

Organisers of financial seminars

Estate agents

Sales Executives with interested* client base

Any business professional with interested* clients

*How do you know if your contacts are interested in the forex markets?

If your contacts are the kind of people who satisfy all or some of the following criteria, then the chances are that they might be interested in trading forex. And this means that you can earn commissions from introducing them to a forex broker:

Previous experience in trading online

Previous experience in investing

Have disposable income to trade

(usually above USD10,000)

Are interested in alternative forms of investment

Want to trade themselves

Want professionals to trade for them

There are few prospects that offer individual or commercial entrepreneurs more benefits than those provided by becoming an introducing broker in the online foreign exchange business. These benefits are driving more and more ambitious individuals and companies to offer their customers and contacts a direct route to trading currencies online and/or investing their money in professionally managed forex accounts.

Qualified businesses and individuals across the world take advantage of the rapid growth of the forex market via an introducing broker relationship. If you want to be one of them, read the section below on why you should become an Introducing Broker.

Below, I have listed just some of the advantages of becoming an Introducing Broker for an online forex brokerage:

Introducing Brokers - Why should you become one?

Your benefits

• Provide your customers and contact with access to the freedom that comes from actively trading their own money online on secure forex trading platforms.
• Increase the number of investment and money-making opportunities you offer your clients and network, which in turn improves the scope and reputation of your own business and can lead to greater client retention levels.
• You are paid a commission based on the trading volume of the clients you refer. For your clients, this doesn't mean that they pay more. You are remunerated exclusively by the forex broker out of his profit from your referred clients.
• You can receive daily reports on the commissions you generate through the clients you refer to your forex broker. This enables you to monitor the growth of you new business online, 24 hours a day.
• You can take advantage of the explosive growth in the demand for alternative investments by offering your high-net worth clients a managed forex account. By introducing clients to a managed forex account, you gain because their investments are being managed by professionals and this increases your reputation as a quality financial services provider.
• It's easy to get started as an Introducing Broker. In fact, if you simply decide you want to introduce clients for a commission based on their trade volume (which is the most popular type of Introducing Broker agreement), then all you need is a relationship with a couple of forex brokers.
• You can leverage the potential in your existing customer base or commercial relationships by constantly improving the level and depth of financial services you provide.
• Your clients often gain better service from you (if you choose to manage your relationship with them directly. The reason for this is that most forex brokers are international and that means that they may not have the in-depth expertise or understanding of your clients specific needs as you do. This improves your service offering and assists in building client loyalty.
• Your own Swiss bank account. A few forex brokers even provide Introducing Brokers with their own Swiss bank account where all commissions are paid. The advantages of having your own Swiss bank account are well known, but there are some great free guides to Swiss banking on the net.

Your clients' benefits

• Your clients can trade forex whenever they choose. The forex market is the most liquid and most actively traded market in the world. This means that 24 hours a day from Sunday evening 22:00 CET until Friday evening 22:00 CET they can decide for themselves when they want to trade and when they want time off.
• Your clients get free account management services to make their online forex trading even easier. All reputable forex brokers provide a complete back office (account management) system, free of charge to all clients.
• Your clients can diversify their investment into online forex trading. More and more investors and traders choose to spread their risk by investing in a number of capital market products, such as stocks, forex, futures etc.
• Your clients do not have to be investment wizards. Anyone can learn how to trade forex in a few hours. In fact, most forex brokers provide in-depth training in how to use their systems.

Getting started as an Introducing Broker

Make sure that the forex broker you choose to become an Introducing Broker for provides all the assistance you require to grow your new business.

The best ones in the market will provide you with the support, materials and training you need so that you can promote their online currency services to your clients and contacts in the most informed and compelling way as possible.

by:John Gaines

4 Mistakes You Must Avoid When Trading Forex

Here are four of the biggest mistakes that cause 95% of newbie traders to loose.

1. Forex Charts Can Not Predict The Future

Although you will hear many traders say technical analysis can predict the future and afraid it is not true, it does however give you and edge, and advantage that over time will result in profit. If you ever hear of a system claiming to pinpoint moves in the market run a mile they will be telling a lie.

2. Trading The Intraday Charts

Trading is an odds game, the aim of technical analysis is to have the edge on your side and to do this you need as much data as possible.

One of the most common mistakes beginners make is to fall into the day trader's trap. Trading every single day on tiny market moves is possible but you have to know that each time you move down in time frame on your charts the less chance you have of making money!

3. Not Using Price Action To Confirm

Many traders will try to buy tops and bottoms based on what they think is about to happen. Stop, think about what you are doing, not only are you trading against the overall trend but you have no real evidence that the trend has turned. You would have more chance placing the money on your favorite football team to win.

Instead of gambling try using a confirming price pattern link the engulfing candle for your entry trigger. It will increase your chance of having a winning trade dramatically.

4. Using Too Many Indicators

I am sure there is not one trader who has not fallen victim to indicator madness, I believe it comes from the insecurity of trading. Traders tend to add indicators to there charts to give there trade justification, a reason to take a trade or get into the market.

Newbie's tend to believe that 10 indicators must be better than 1. Wrong, you would be far better learning one indicator very well, and sticking to it. Learn its patterns and relationship with price, learn how to read it without hesitation or the need for other justification.

A simple system will work far better than a super complicated one, you will not get rewarded in the forex market for being clever, you will get paid for being on the correct side of a move.

by:Dean Saunders

Forex Trading - Is NOT Easy 95% of Traders Lose - The Good News Is

The majority of forex traders think it is and make the same errors time and time again and there BASIC. Below I have outlined these errors, avoid them and accept the truth about forex trading and you can win and win big time.

First let’s look at the most common errors.

1. Buying success

In forex trading there are plenty of vendors who will sell you a worthless course with no track record for a few hundred dollars and promise you un-told riches and guess what?

The vast majority are junk, have no real track record (a hypothetical one is not worht the paper its written on as its done in hindsight knowing the closing prices) and rely on hyped up advertising and lies to appeal to the greed and naivety of the reader.

Let’s face it, if these vendors could do what they said they could, they shut up and not bother you.

2. Using tools that will NEVER work

Most traders use tools that will never work and here are just a few:

- Scientific Systems

Elliot wave and Fibonacci are the kings of these tools. Both believe that markets are scientific – well there not.

A child in school knows that if they were, there would be no market as we would all know the price in advance. A market is a market, because it depends on opinions of humans and they DON’T think logically or to a scientific theory.

- Day trading

The time period is to short. All short term volatility is random and you can never predict support and resistance in a matter of hours or a day. You may as well flip a coin.

Ever seen a day trader with a real time long term track record of profits? – Neither have I – Let me know if you find one.

- Lack of confidence and discipline

Even traders with good methods can lack this – You need to have rock solid confidence in your system to help you trade through periods of losses.

This is the HARDEST part of trading and most traders simply cannot do it.

It really is a learned skill but it takes time a total understanding of your method and knowing what your trading edge is – If you don’t know what your edge is you don’t have one!

The Truth About Forex Trading Is

The way to make money is not to follow others, or think its easy - its not.

The way to succeed is to work smart and hard and the rewards are immense.

Accept the reality that you need to devise a mindset to deal with an entity that is all powerful – only you can be wrong as the market price is right.

Learn to trade it by accepting this fact.

It’s going to make you look stupid at times, but accept its power and work within its rules and treat trading as an odds game and you can win and win big.

Most traders are naive greedy or stupid – or even all three combined looking for an easy dollar and that’s why they lose.

Get the right mindset work hard, understand yourself and understand the market, treat it as an odds game and you could win at forex trading.

Everything about forex trading success can be learned the rest is up to you.

by:Monica Hendrix