Aug 22, 2025
Basics
An introducing broker acts as an intermediary between traders and brokerage firms. It can be an individual as well as a company. IBs don’t execute trades or manage accounts themselves, but give advice and help clients open trading accounts and navigate the brokerage platform.
IBs are common in futures and Forex markets, where they bridge the gap between traders and brokers by providing personalized services to clients while relying on the operational infrastructure of larger brokerage firms.
An IB’s main function is serving and supporting the client in many ways. An introducing broker can:
refer new clients to a brokerage or an FCM (futures commission merchant)
provide the client with financial information, market insights, or trading strategies
assist with account setup and customer service
help clients choose the most suitable trading platforms
offer localized or language-specific support, which is relevant to clients trading in international markets.
Choosing a reliable IB is as important as choosing the right platform or broker. Luckily, the latter is not a problem: trade securely with FBS!
Essentially the difference between IBs and FCMs is that a full-service broker handles everything from client acquisition and trade execution to customer support and portfolio management, whereas an IB focuses on building relationships with traders and assisting them.
Let’s break down these differences in more detail — see the table below.
| Introducing broker | Full-service broker | |
| Executes trades | no | yes |
| Brings in new customers | yes | yes |
| Provides technical infrastructure | no | yes |
| Provides personalized support | yes | yes, often |
| Regulatory registration | CFTC/NFA (futures/Forex) | SEC/FINRA or CFTC/NFA |
As you can see, full-service brokers have broader functionality, but IBs are more agile and client-focused, which is definitely an advantage in the fast-moving world of Forex.
FBS can help you navigate it: start with a demo account.
There are several ways for an IB to make money:
Spread commissions: an IB gets a portion of the spread (the difference between bid and ask prices) from each trade made by their client.
Rebates: IBs may get a rebate based on the volume or frequency of their clients' trading activity.
CPA (cost per acquisition): some brokers pay IBs a fee for every new client they bring in (regardless of trading volume).
Naturally, the exact earning model may vary depending on the IB-brokerage agreement.
Want to become an IB? It certainly can be a profitable career path for you if you know Forex trading well and have a network of potential traders. Here are five steps that will help you get started.
To be a successful and reliable IB, you must be a pro at Forex and futures trading. Understand different trading platforms and how they work, and learn more about brokerage structures.
The next step is to select a reputable broker that offers an IB program. To make sure it’s trustworthy, review the commission structures, platform support, and client services — there’s no such thing as too much information.
To work legally and deal with futures, you must register with the Commodity Futures Trading Commission, (CFTC) and, if you’re in the US, become a member of the National Futures Association (NFA). Note that some countries may have their own local regulations or licensing requirements. Safety is a priority: make sure that your clients are protected from potential fraud.
Important: operating as an unregistered IB in a regulated market is illegal and can result in penalties or bans. Always check with local financial authorities before offering brokerage-related services.
Do you want to operate as a sole trader or company? Whatever you choose, it’s important to introduce yourself to the trading community. Create a website, develop marketing materials, and prepare client support tools — it will all come in handy.
Educational content, social media, and webinars are great tools that help to reach out to traders. Provide personalized support to help them open and manage accounts.
"IBs are the same as brokers."
They both work in trading, but IBs don’t execute trades, only introduce and support clients.
"IBs always act in the client’s best interest."
Being client-focused is the main feature of a good IB, but some may prioritize earning a commission instead. Don’t hesitate to run a thorough background check and verify an IB's reputation.
"It’s easy, anyone can become an IB overnight."
A successful IB is a professional with deep market knowledge, regulatory compliance, and strong networking skills — one certainly can’t acquire these features overnight.
By registering, you accept FBS Customer Agreement conditions and FBS Privacy Policy and assume all risks inherent with trading operations on the world financial markets.