Beyond Commissions: The Essential Support FX Brokers Must Provide to Their IBs

Beyond Commissions: The Essential Support FX Brokers Must Provide to Their IBs

For Forex brokers, it has always been challenging to be the center of attention in this extremely competitive market. Bringing in new customers and making the most of their trading is the key to the broker’s growth. With the emergence of Introducing Brokers (IBs), a new trend has been set for Forex Brokers in terms of achieving desired goals.

The role of IBs is to channel their knowledge and efforts into converting potential leads into actual business. If the IB knows a new trader's preferences, spending habits, and market trends, it becomes easier for them to get more and more clients onboard with the main Forex Broker.

The main reason for IBs to connect with a particular broker has always been the commission that the broker offers. However, over the period, bringing out the best performance out of an IB has become extremely challenging for the brokers.

In order to attract IBs these days, only regular commissions or rewards do not work. The IBs look for the various offers the brokers run for them in the market. As without the IBs, it is difficult for Forex brokerages to establish themselves in a new market and get their client base to increase, the brokers need to bring something new and exciting to attract the IBs to collaborate with them.

Here, we would like to highlight how brokers can configure a better relationship with their IBs by going beyond conventional commission structures.

1. Commissions that are flexible:

The basic should be volume-based commissions. The higher the volume, the higher the earnings. Apart from that, the broker can offer spread sharing, meaning a percentage of the spread that the client pays on each transaction. Also, there can be a fixed percentage of reward to the IB for every new client reference.

2. Level-wise structures:

Tiered or level-wise commission structures can be another attractive way for IBs to be associated with a particular broker. The progressive tier is where the commission rates increase for a higher volume of transactions. The loyalty tier represents the increased commissions for IBs who have been associated with one particular broker for a long period of time and generate high volumes.

3. Commissions based on performance:

Brokers can set up a system of generating commissions over a period of time, like a quarter or a half year, based on the performance of the IBs. Also, brokers can set certain targets and, upon achieving them, generate commissions for the IBs. The targets may be achieving a number of live contacts or some specific trading volume.

4. Combination of various commissions:

In order to attract more IBs for long-term partnerships, brokers need to combine fixed and variable commissions, like some fixed amount per client and a certain percentage of the revenue generated.

5. Rebates:

IBs can offer their earned commissions to their clients in order to acquire potential traders and retain them.

Apart from the above commission structures, brokers can work with IBs and strategize some customizable commission plans based on their business model and client base. The broker needs to keep in mind that negotiations always work to better cater to the IB’s requirements. Various contests or competitions work quite well where IBs get cash prizes or other rewards by leading the board of top-performing IBs. Moreover, incentives for various product promotions would increase the enthusiasm of the IBs. Brokers have to create more opportunities for the IBs, like joint ventures for shared profits, which ultimately would witness the growth of business.

The modern-day IBs are tech-savvy, and they require techniques to retain their clients. A broker can offer integrated campaigns and content to support existing and potential client acquisitions. Providing certain digital tools to IBs for promotions and campaigns broker can empower the IB to win the battle of attracting more customers.

Join hands with us and learn more about the Cloud Forex CRM’s IB module. Together, we can build a system that will be beneficial to the broker as well as IBs in terms of earning fortune. Visit us at www.cloudforexcrm.com or WhatsApp for more information.

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