Best brokers for introducing brokers(IB)?

for IB & Money Managers, when they considering partnership, usually taking into factors below,

strict regulation: obviously no one want to deal with scams, and fund safety is always priority.

competitive trading conditions: execution quality and spread wise. Frankly speaking, for non scalpers/short term trader, ~2 pips for EUR/USD is good enough, as long as the price is legitimate.

competitive rebate for IB/money manager: this is a tricky issue here, both broker and IB need their cut in the mark-up, and I think for long term business relationship, both parties should get reasonable compensation.

There are hundreds if not thousands online brokers globally, and it's really a tough job to find the suitable ones, any recommendations will be much appreciated.

Thanks

Money Manager programs and IB programs are usually treated entirely different from each other.

Most of what you're talking about (vested interest in tight spreads, good execution, overall quality of brokerage..etc..) is for money managers / advisors.. they'd care since most of their pay is performance based (at least, good money managers make their income from performance fees taken from profits only. If a money manager wants to hit you with transaction costs alone and has no vested interest in you making a return, then that's a huge red flag.)

Lastly, from a 'transaction cost' point of view, there's no need for the money manager to be profiting from churning the account. In equity trading, there's some areas of the world where strict laws are put in place to prevent this action.

As for IB's... that game is lost. The wide spread prevalence of rebate providers makes getting into it a real pain. Even services that used to offer value (EA's, coaching, advice, etc...) now also have to offer rebates just to retain clients... And if you want to be a rebate provider yourself it's then a huge game of who wants to give away the most revenue... some are doing complete pass-through at this point and make money from selling 3rd party stuff to their client list.

There's no barrier to entry and too many competitors.. why even bother?

Atop of that... most new IB's just pick the broker who pays out the most and markets them. They have no monetary interest in the trader's specific needs as a client and would rather "burn and turn" through new traders on a high paying (but poor) broker than put the work in to build relationships and help grow long-term trading clients. Again, this is because such payoffs are the only thing worth it since rebate providers have gobbled up most of the market. (This is exactly why we see so many new posters coming here to spam links to brokers like hotforex, tradersway, and FIBO... they suck, but they pay out a lot to IBs..)


Personally, I'm against the entire IB rebate providing business model... I'd rather just have cheaper trading conditions across the board instead of dealing with rebates.

I hear you. Although respectfully disagree with your comments on IB model, we should conduct business in a ethical way. Turning clients' funds into commission payout model can only last for a short time.

So far, ATC, Alpari UK, FXCM UK is on my radar, any other potential candidates?

Thanks

www.fastbrokers.com

www.armadamarkets.com

What services are you going to provide anyway? The broker has to fit the client and service.. you can't just pick one off the shelf.

Jack - Good point.

I can speak on behalf of the IB model - brokers vary widely. Take into account your relationship with a broker too - if you have a good contact at your broker of choice chances are they can get you good promotions (ie exclusive deposit bonuses, limited time rebate increases, etc.) I won't name names but when I was big into the IB model I had a great relation with one broker specifically who bent over backwards to ensure the majority of our business went to them and only to them.

Are spreads important to your clients? Execution? Bonuses? ECN/DD?

We had rebates that varied from $4 per rt standard lot at Pepperstone to $12 per rt standard lot at FXCM UK - and everything in between. Surprisingly FSA (UK) regulated brokers tended to be among the most difficult to deal with. ASIC regulated brokers tended to be the easiest and most willing to put together "special" offers for our clients. NFA regulated brokers... well, they're NFA regulated, 'nuff said. I hope for your sake you don't have any US clients, or aren't planning on taking your Series 3, Series 34 and getting setup in the US.

It's a very traditional model. Offer analysis and live calls for clients, and if some of them have interest, join the money manage program (only management fee/only performance fee), etc. Just on set up stage, right now find the suitable broker.

I think everyone who have plan in this profession could benefit from this thread. (Also hope some brokers' reps could introduce their plans here.)

Thank you. But LMAX is losing money at current (Goldman Sachs made huge loss on this investment), need time to watch. So right now, I am afraid it's not very suitable for me.

Agreeing with Jack - mixing (introducing) broker and moneymanager roles results in a huge conflict of interest and should not be done.

There is hardly any IB who provides any real added value over what an individual can get on his own anyways. With a few exceptions like Fastbrokers or ATC, who provide custom technology. Most are just ripping off people one way or another.

Too bad Fastbrokers don't take Canadian residents.

I'm new to forex trading. I'm a little confused about introducing brokers. What they actual do with real brokers? I mean what is the connection between broker and IB?

Introducing brokers are those who partner with any broker and earn money while referring client to these brokers. I have noticed many traders are also making money by trading with their broker and also earning by referring their friends and family to such brokers. However i better stick with trading only as if your referred client looses money with the broker he will blame you as well as the broker so its good to earn while trading forex and earn good money from it.

I am looking for an IB for LMAX, would you be able to recommend any?

I tried to contact fairfxtrading, fxmtf. They didn't seem to answer my emails for some reason.

What should we be expecting from the IBs? Do they charge commission when we open an account through them.
Pardon my ignorance with IBs.

http://www.alphanovae.com/lmax-exchange/

Thanks. unfortunately, I just found out that LMAX does not accept retail from Singapore..Sad.
Looking for good ECN is tough.

I'm new to IB but have interest in it.

So I have this question to you who are IB:

What are the necessities to be an eligible IB? (blogs, websites, clients etc)
How do you go about it daily?

Thanks

I recently stumbled across a site DayTradingForexLive and the guy there mentioned that he never worked as an IB with a broker until he found Global Prime in Australia. I've been using Australian Brokers for a while due to the ASIC Regulation and been pretty happy with Global Prime, Pepperstone and AxiTrader. Not sure what the IB conditions are though.

Cheers,
Piplife