Forex Introducing Broker
In the past the traders were willing to act as Forex introducing broker to any potential trader. Currently, it is not easy to find a trader who will introduce you into the Forex market. They are more particular of the people they recommend. There are those traders that will have nothing to do with those dealers whose firms are not registered by a recognized body.
The role of the introducing broker is to act as the customer service department of the firm. The broker is in charge of bringing you clients and making sure that the atmosphere between the two parties is ideal for the facilitation of trading.
The introducing broker is then paid compensation depending on the size of the spread. This compensation takes place every time a transaction takes place. There is usually a relationship between the firm and the broker. It is developed over time. In the course of the relationship, the broker is able to enjoy some benefits from this association. If you are dealing with an honest broker, they will be able to share with you some of the bonuses that they get from the firm.
A number of people do not trust the introducing brokers enough to work with them. This mistrust is caused by the mentality that the introducing broker is a form of middleman. This is just a misconception. A good introducing broker will never be in charge of holding your funds. They will also have nothing to do with the trading transaction.
However, you can use the introducing broker to improve on your dealings. They do this by acting on your behalf when things go wrong with your account’s details. There are those times when you need some rectifications with your account; if you have a small account, the introducing broker will represent your complain to the firm. They will also help you sort out the issue amicably.
The broker will also help you come by some of the services that would not be availed to you otherwise. There are those brokers who will serve you for no charge at all. They base their decisions to offer free services to them based on the fact that they are paid for bringing as many customers to the clearing firm as possible.
The services offered by the broker will help you improve on your trading. All you need to do is find time to learn some of the basics involved.
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