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What means Introducing Broker?

Discussion in 'General Forex Talk' started by Norbert Polgar, Oct 26, 2010.

  1. Norbert Polgar

    Norbert Polgar Private

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    Could someone explain what means "Introducing Broker" exactly? What they do? What are their rights and liabilities generally? How they work? What is their function? etc...
     
  2. Pharaoh

    Pharaoh Colonel

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    An IB's job can be as simple as giving you a signup link with their affiliate ID in it. It can go from there all the way up to handling deposits and withdrawals.

    Some IBs will help you get set up and provide support.

    The IB gets a cut of the spread (or commissions) that you pay. Sometimes, using an IB means that your spread will be widened one or two pips. Unless the IB gives you some amazing services, it's not worth paying extra spread.

    Stay away from IBs that handle deposits and withdrawals. If there is a dispute over money between the IB and the broker, you may never see your money again. Always send your deposits directly to the broker so that there is no question about who owes you the money when it's time to make a withdrawal.
     
  3. Norbert Polgar

    Norbert Polgar Private

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    Thank You Pharaoh.
     

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