Benefit(s) Of Being An Introducing Broker (IB)?

What are the benefits of being an introducing broker? Is it true that as an IB, you enjoy virtually ALL of the benefits the mother company enjoys and many more if you have large clients' database?

I need you comments and views on this.




Thank you.

It seems guys here don't know much as regards this subject.

I hope am wrong.

You get paid based on the volume of the people you referred. Of course money is nice, but how to get a lot of volume would be the question

What are the CFTC/NFA/SEC regulations regarding IB's based in the US?

What if I just want to have a link or banner ad to the broker on my site (like Forex Factory does with their Preferred Brokers link(s))?

What if the broker is not US-based/regulated? Is there any issue or benefit there?

I've been looking into this for a few days and have found few answers. The CFTC has a minimum $45,000 USD capital requirement for IB's... Read CFTC's "Interpretation Regarding Use of Electronic Media" to wake you up a bit : ) I read that it was overturned due to a violation of 1st Amendment right to free speech...but there's still a bit there to worry about.

I just want to link to my favorite brokers and hopefully participate in some of the profits...just like putting an Amazon product on my page...I'm not responsible if the book the customer orders doesn't satisfy the customer (though I would feel bad if they bought the book solely on my recommendation : ) but I still get paid a percentage of the sale. It sounds like the problem is CFTC regulation. Perhaps if I host my site in a 'friendly' country?

P.S. I am new to the business side of Forex and Securities in general, I'm a trader that is interested in learning more about the ins and outs of the business and regulations (and loopholes : )

Well I guess the only benefit is that you immediately get banned in the majority of forums, so you can turn off the PC and get a life finally.

Acrita, that makes no sense to me...banned from a forum because I have a link on my website to a non-US broker? ForexFactory does this. Or would I be banned for asking a simple question?

Thanks for the useful comment. /s