IB issues - How to be an IB?

[Khastian]

Hi there! I want to become a IB and I have some questions regarding this matter, and I know that in this forum I can receive answers.
1. What documents I must provide in order to start introducing
2. How I kniow that the broker companies have licence and they are legal
3. What comission can I get by introducing? It can be applied on client's trades whenever a trade is opened or closed?
4. The spread can be floating or fixed?
5. The rebate rate is part of the reward given by the company?

Thanks in advance, if I will have further questions I will get back to you

 

[Pharaoh]

I've never done it, but have seen quite a few discussions on the topic.

1. I would assume the same IDs required to open an account. AML laws apply to all money sent by a broker.

2. First, check the broker's website to see if they claim any license and registrations. Then verify those (some brokers have been known to lie). Also, make sure that at least one of them is a financial license or registration with a real regulator, not just a business license. If they are with a financial regulator, see if that regulator ever issues fines and not just warnings.

3. This will vary from broker to broker. Generally, I think if you are getting commissions from trades, those would be awarded when the trades close.

4. Depends on the broker. May even depend on the account type within a specific brokerage.

5. I'm not sure I understand. If you want to be an IB rebater, then you get a commission and give a part of that to the clients who sign up under you.

 

[Khastian]

Thank you for your reply, it made the picture more clear.

Basically I am looking for a broker that can assist me to charge a certain commission on the trades of the clients that were introduced by me. Do you have any suggestions? Can you guide me to such a broker?

Thanks in advance

 

[Pharaoh]

The vast majority of forex brokers offer a cut of the spread (or commission on ECN accounts) to IBs.

Some not-so-nice ones even let you add to the spread and keep the part you tack on. This harms your clients and will ruin your reputation if anyone notices, so I strongly advise against it.

First, focus on finding a good, well-regulated broker that serves your area. Then check the website under IB or partnership opportunities.