The right broker makes a difference for your business
In a cut-throat competition between brokers, some of the trading companies offer prospects of impossibly high commissions to attract introducing brokers to their businesses. 70% sounds sweet, but where does it come from?Exercise judgment when choosing a partner. Recognized and trustable trading companies have huge operating expenses: offices, utilities, salaries, legal fees, accounting, marketing and advertising, customer support—to mention just a few of them.
It is beyond the brokerage company pay grade to grant from 70% to 80% of the revenue to an IB. It is just out of the question. If you have such an offer, do not rush and check it for hidden pitfalls: you are probably cheated through manipulation by faulty information. You % might be calculated after all the expenses, the offer can be limited in time and, the condition will change after a while, or—even worse—it is just a bogus company that will disappear in one night.
A piece of advice: Hold off with solid investments and try how the system works with a small sum of money. You will see the results after a few trades. One of the most accessible ways to start a career in the financial sector will become the IQ Option IB Program. You can register on the portal of the same name. For more information on trading strategies, see bestintroducingbrokers.com.
Reputation Is What Matters
Authorities try kind of to regulate brokerage for the good of consumers. After the retail FX CFD ban was scrapped in the EU for being ineffective, things are easier again for IBs, but there are still many irrelevant attempts to sort them out into “trusted” and “fraud”.So, the reputation of a broker in the trader’s community and the history of the broker’s success are the things you have to pay your attention to.
Search engines, especially Google, play a part in the game of evaluation of traders on the Internet. You can often see the resources labeled as a scam in search results, but this labeling is based on subjective criteria. Big businesses invest a lot to fix the issues and to meet all the criteria, but not every broker can afford it and—the main issue—avoid of negative reviews in the industry where the risks are high and emotions play on traders’ nerves.
The only way to find out the truth is to make own research on brokerage companies you are interested in.
Here is the checklist of the essentials you have to know:
- How old is the company?
- Does it unveil its history and show is achievements?
- The number of clients.
- A company website quality.
- Have it built a strong social media presence? Does it support the customer community? Are any traces of public communications?
- Does the company offer education for the customers? Does it have video tutorials, manuals, and a help desk?
- What about customer support? Is it possible to reach them quickly?
- Does company invest in social projects?
You can include your own questions to this list, but the main thing you have to find out is whether the company real or appears to be a sham.
To build liability you need time, but transparency is an honest invitation to cooperation without hiding any information.
Note: You can only prove that a company is trustable and pays back if you check it yourself. Registering does not hurt—it is free—and, then, you can invest a reasonable amount to see how things go.
Partnership with a Revenue Share
One more trick you might not recognize at once: a generous offer of a share in the profit. The catch is that being a partner you pay the risks on your traders’ deals.So if you have good earnings on your clients, it might end up with a successful trader joined through your referral link. The true is you will pay the trader’s earnings from your account and earn almost nothing.
A trading platform is a key pillar of your business. If people do not like the platform, nothing could prevent them from going.Developing own platform is a challenging and costly task, so not many brokers choose this way. Most of the trading companies buy one of the well-known platforms and offer it to their clients.
Note: IBs mostly work with newcomers. Choosing a user-friendly platform that suits beginners is the way to success!Proven by time, the MetaTrader platform has been already serving professional traders for more than 15 years. Another popular choice is CTrader that is currently offered by many brokerage companies. You can find more: they all work for the purpose, but, finally, the best brokers consider having own platform. As an