Imagine you could earn commissions by helping other traders with your strategies and skills — what would that look like? Say, you have a website, a YouTube channel or even an Instagram page with a great following, and other traders look up to you for advice in order to improve their trading technique. How could you become an Introducing Broker and benefit from that?
An Introducing Broker (IB) is an individual or a company that consults, teaches or guides new traders while referring them to a trading company, earning commissions with their referrals. Like many brokers, IQ Option also has its own IB program.
Basically, an IB acts as an intermediary between a broker and a trader. This way, an IB can provide education, consultancy or support to new clients and get a small reward for it. Most introducing brokers are also expert traders who can offer tips, and help individual traders improve their results with education and support.
An Introducing Broker also cares about their community, making sure that traders are happy with their results and helping them make the right decisions, motivating their community to grow. Normally you will see that, much like affiliates, introducing brokers find and refer new traders to brokers by offering and advertising trading-related services such as:
- trading education and tutoring;
- schools & academies;
- seminars and webinars;
- signals, investment ideas and financial consulting;
- other events & services for traders.
Who can become an Introducing Broker?
There are almost no restrictions for someone to become an introducing broker. You don’t have to be a professional trader or obtain any specific license or certificates, but the best IBs are often traders who share their knowledge and help traders with education. Some introducers do this by creating YouTube channels where they share their trading strategies, while others simply have an online or offline community where traders can help each other.
Both individuals and companies can become Introducing Brokers, so sometimes you will also see trading schools and academies or a local consulting office advertising a trading platform, such as IQ Option.
How do I start?
So, how to become an Introducing Broker? IQ Option’s IB Program, as well as many other IB programs, does not require licenses or a special education. It takes less than a minute to become an IB with IQ Option. You simply need to register an account, fill in a few details, and you are ready to go.
But beware! While there are no restrictions to becoming an introducing broker, like any affiliate or partner, it is necessary to follow the rules on how to approach traders in order to avoid conflicts of interest, especially when advertising a broker’s services. Practices such as spamming or failing to disclose the risks associated with trading are often the reason for cancelling the IB’s agreement with any broker.
Introducing Brokers have access to the company’s promotional content as soon as they sign up. They can use it for advertising, as long as marketing guidelines are met. The promotional content includes landing pages, banners, promotional videos, marketing campaigns on relevant themes and a lot of helpful information. IBs also have an account manager to help them navigate through all the information related to the partnership program.
What benefits do IBs get at IQ Option?
Introducing Brokers at IQ Option can choose from different commission models. With IQ Option’s new Spread Share model, you can get commissions of up to 40% of the Spread of every deal your clients make, independent of the result of their trade, avoiding conflicts of interest with clients and having a profitable partnership with the company.
The standard Revenue Share model also allows you to get up to 45% of the profit generated by your traders on the platform, allowing you to keep earning commissions based on traders’ personal results. For those who are able to attract a considerable number of clients, the IQ Option IB Program provides additional incentives, such as increased profitability for at least 30 days.
What makes IQ Option’s IB model unique?
Other brokers tend to punish IBs by discounting any losses generated by clients and forget to mention that partners usually carry 100% of the risk. What does this mean? For example, you manage to set up a solid client flow and reach a certain earnings level and another trader joins in via your link, generating losses in the platform. The trick is that 100% of the losses generated will be attributed to your account and will bring your profit basically to zero, ruining your previous achievements.
This will never happen in a partnership with IQ Option, since their IB Program has a system of trader insurance and profit guarantee, meaning that the commission is calculated separately. This way introducing brokers don’t have their earnings affected by clients that generate losses in the platform and their performance can remain high.
All in all, there is a clear benefit for becoming an introducing broker if you have any kind of trading community, be it a YouTube channel, Instagram page, or just a circle of friends who trade together. Since there are very few requirements and the application process is instant, it can be a very good way to earn an extra income by referring new clients to IQ Option.