Forex trading is becoming the dominant investment sector online leading into a huge boom of opportunities arising from potential partnerships associated and complementing the industry's online activities. With more than $4 trillion
traded every day, the net is consumed by firms competing with each other in order to provide Forex trading services to customers thus rewarding partners with some hefty commissions. These partnerships can be utilized by affiliates, web marketers, web masters, traders and experts. If you are considering Forex as a trader or a potential partner, this article will analyse some important characteristics of a particular partnership type, the Introducing Broker.
Introducing Broker (IB): Commonly known as IB, this type of partnership is among the most popular in Forex trading. As an IB you are rewarded for every client you refer to the broker if all the necessary requirements are met. You can find IB programs all over the internet as most Forex brokers offer them. The rewards vary from broker to broker but the most common are:
1) CPA: You are rewarded a fixed return for a specific action. This action can be anything from a new user registration to new depositing client or certain trades performed by a referred client. If you are considering CPA have a look at the different rewards offered by brokers and choose the one that meets your requirements as a potential partner.
2) Profit Share: In this type of partnership you are rewarded a share of the profit the company makes from the clients you refer. Programs vary and can stretch from 20% - 80% profit share.
3) Hybrid: Hybrid is a combination of CPA and Profit Share programs where you can earn a combination of rewards based on the two types. Choosing a hybrid program might lower the percentage earned for Profit Share depending on the broker.
The process of becoming an IB is simple as you need to find a broker and form a collaboration by going through the traditional paperwork process. Reading the contract and understanding the clauses is highly recommended as to avoid any potential confusion in the future. It is also recommended to note any contact information of the broker, when problems occur or support is needed. Most brokers of multilingual support during markets hours 24/5.
Lastly finding a broker that provides real time reporting, tracking and marketing tools will be an added boost in your overall goals and strategy as an Introducing broker in Forex trading.
Richard J Broomstick is a financial writer. Check out his etoro review and learn everything about Forex trading at http://fxmoz.com
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