IB (Introducing Broker) is a major part of Forex Industry, which works as bringing new clients to a foreign exchange brokerage. The Introducing agent gets a fee for bringing customers to a brokerage. When talking about Forex, the fee an Introducing agent gets is a share of the commission or spread charged by a brokerage. For instance, if a client is charged around a total of ten dollars commission for a given foreign exchange trade, an IB can get fifty percent of the sum or anything on the line.
A large percent of brokerage companies like to operate Introducing Broker programs because it can lower the costs required to get new clients. The marketing efforts will be assigned to people and companies that are working on a commission basis. Some nations require that Introducing Brokers should be authorized entities by law. For example, in the United States of America, IBs are expected to register with the NFA to do business with US citizens. Introducing brokers in Europe are not bound by any law or requirement to be regulated, but may pass through a thorough vetting procedure.