The 5 Benefits Introducing Brokers Bring to your Retail Forex Brokerage
At first glance, Introducing Broker programs are seen to add value only in one way: bring you more traders. Since that is the main goal of any brokerage, business development teams may at times get tunnel vision and forget all of the extra value IBs can bring you. Introducing Brokers are not just people convincing their family members to trade forex. Often times they are entrepreneurs who have the same drive you do to bring on traders, but simply do not have the resources to start big from scratch. Just look at Currensee , a well-known brand in Forex. They started in this industry as Introducing Brokers. You can bet that these clever gentlemen brought a lot more to the table than just traders in their IB days. So what else can they bring you?
Whether you’re an ice cream shop or Forex brokerage, more locations is an indication of success. Everyone would rather do business with the company that has seemingly global reach rather than the a firm with little reach. When you bring on IBs, you are bringing on their reach and sphere of influence. They are about the closest thing to opening up a new office: So treat it like that! This recognition of expanding influence is a two-way street as well. Treat Introducing Brokers as an extension of your Business Development team and they will work harder for you than they do with any other broker they have an agreement with.
Besides the marketing benefits and “oo la la’s” you may get for people checking out your website, a broader sphere of influence, or offices, has incredible benefits that just about anyone can appreciate. What’s cheaper: Recruiting, hiring and training a team of three to open an office is another country or partnering with an Introducing Broker already located in that country? The math is so simple I’ll save my breath on that point. Introducing Brokers will open markets you never thought possible. European brokers can enter into Asian markets and vice versa.
Community Building Tools
I’m not saying your IBs will be planting trees in Beijing, I’m saying they will offer your traders services you might not currently have. Remember, IBs need to give the traders added benefits to differentiate themselves from Brokers and IBs. These added benefits will serve as an extension of your current offerings. You don’t offer signals, education, or money management? That’s ok! Find an IB who does, and you just expanded your offering without adding a cost center to develop these services.
This might be one of the most overlooked aspects of having a great IB program. Whenever you translate your website into another language, you are instantly opening up your brokerage to an entirely new market. I don’t care if you’re translating your site into Basque, you’re still gaining potential for new customers (maybe you’ll capture an unseen market with that one!). It’s a great idea, but how do you execute it? You can hire a buddy who speaks the language, sure. But simple translation is not enough, they must simultaneously speak the language of forex in order to have effective copy and not have major selling points get lost in translation. Hire your IBs instead. They already speak the language natively, and sell traders for a living, they are the perfect recruits. The added benefit here is it strengthens your relationship, too.
There are some Introducing Brokers that work with you so they can make a few extra bucks referring their close network to your brokerage, but the significant volume of traders you see are from IBs taking the task of onboarding traders seriously. To do so, they have to set up processes, systems, working space and recruit the necessary sub IBs and support staff to get their business running. One serious IB can eventually turn into its own business. At that point, your network has expanded. Have a great relationship with that network? It’s a great point to onboard talent to your own brokerage and recruit A-Players who are already one step ahead of the competition.
With all the potential that Introducing brokers have for your business, it’s important that YOU set up the right systems and processes in order to have the best IB program possible. Ask us how.