Friends who are new to foreign exchange brokers or those who have recently traded in foreign exchange may be curious about such a term (terminology): What does IB often mean in foreign exchange platforms?
The so-called IB, in fact, is the abbreviation of Introducing Broker in English: Introducing Broker, it means: introducing broker, or foreign exchange agent, foreign exchange agent.
So what exactly do these IBs or foreign exchange agents do?
They are actually introducing new users to the foreign exchange trading platform. IBs are usually non-full-time personnel. They have an agreement with the foreign exchange trading platform. IB is responsible for bringing new users to the platform. As a reward, the platform will reward IB with corresponding commissions. The commission is generally linked to the trading volume of the new users introduced by IB on the platform. Usually, the commission is a specific percentage of the user's trading volume. The more active user transactions are, the more commissions IB will receive.
Through the establishment of an IB agent mechanism, the foreign exchange trading platform can effectively reduce the cost of acquiring customers and reduce the costs of marketing and service.