Introducing Broker (IB)
Brokers & RegulationA referrer who earns commission for directing clients to a broker, without holding funds or executing trades themselves.
An Introducing Broker refers clients to a forex or CFD broker in exchange for a commission or rebate on the referred clients' trading activity, without handling the clients' funds or executing trades directly — the underlying broker does that. IBs range from large regulated financial firms to individual affiliates running a website or community.
Because IB compensation is often volume-based, it's worth being aware that an IB's recommendation can be commercially motivated, which is one reason to independently verify a broker's regulation rather than relying solely on an IB's claims.
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