Introducing Broker
Introducing Broker (IB) is an industry term for a Forex Broker. An introducing broker is a brokerage firm that interacts directly with the client (trader), while the back-office work and trade execution are the responsibility of a Forex broker or a liquidity provider.
Overview
As a technology provider, Fintechee offers brokers a White Label, authorizing them to use Fintechee’s WEB Trader as a Forex trading platform. Fintechee’s WEB Trader comprises a frontend package and a backend package.
The frontend allows traders to use Automated Forex Trading and Trading Simulation. The backend facilitates order router management, connecting with multiple liquidity providers via the FIX API Trading Platform—a feature known as the Price Aggregator. It integrates with the FIX API Trading Platform to aggregate quotes from different sources.
The significant advantage of signing a white label agreement with Fintechee is that introducing brokers can display their brands on the WEB Trader’s logo position. Acting as the owner of the WEB Trader enhances credibility and competitiveness for introducing brokers.
We have collaborated with over 20 Liquidity Providers and tested connectivities with all of them. “LMAX Exchange,” “Swissquote,” and “ATC Broker” are three liquidity providers that support this cooperation model. “FXCM” supports FIX API based MAM technically, but compliance approval is pending.
While we can assist in connecting you with our liquidity provider partners, it’s not limited to them. ANY liquidity provider can be connected via our FIX API trading platform.
You can specify your preferred liquidity providers as long as they support this kind of cooperation. Let’s explore more features for introducing brokers.
Business Model
Note that an individual can also be an introducing broker.
Steps for an introducing broker to onboard:
- Sign the white label agreement with us to get authorized to use our WEB Trader.
- Sign the introducing broker agreement with a liquidity provider.
After a client (trader) deposits, we will synchronize the corresponding credits for the client on our WEB Trader’s dashboard (back office).
Features
Explore the introductions to learn more about the features of our product.
Liquidity Provider
Check this material to learn about the liquidity providers who cooperate with us: Liquidity Provider.
Specialties of Our Liquidity Provider Partners
Our liquidity provider partners each have unique specialties.
“LMAX,” “Swissquote,” and “ATC Brokers” provide FIX API based MAM and Shared FIX API that make introducing brokers white-labelable.
“FXCM” supports FIX API based MAM technically, but we need to wait for compliance approval.
We are in discussions with three more liquidity providers that support FIX API based MAM.
“Exante” provides a Cryptocurrency FIX API suitable for building crypto OTC brokers.
“FXCM” and another liquidity provider even offer a kind of FIX API connectivity that supports Spread Betting.
Thus, you can experience a unique trading environment available only here.
Pricing
| Features | FIX API Based MAM / IB | Other Plans |
|---|---|---|
| Brand | ⭕ | |
| SDK Trading | ⭕ | |
| Custom Indicator | ⭕ | |
| Expert Advisor | ⭕ | |
| Backtesting | ⭕ | |
| Trading Simulator | ⭕ | |
| Parameters Optimizer | ⭕ | |
| Streaming Quotes | ⭕ | |
| Historical Data Downloading | ⭕ | |
| Multiple Accounts Management | ⭕ | |
| Multiple Charts System(WEB Based) | ⭕ | |
| Artificial Intelligence Integration | ⭕ | |
| FIX Engine | ⭕ | |
| Trade Positions Management | ⭕ | |
| Order Router Management | ||
| Price Aggregator | ||
| RESTful API | ||
| Dashboard(Back Office) | ||
| Tech Support | ⭕ | |
| Hardware | ⭕ | |
| Network Traffic | ⭕ | |
| Monthly Maintenance Fees | $0 | |
| One Time Installation Fees | $0 | |
| Monthly Volume(All Sub-Accounts) | > 200 Lots | |
| Money-Back Guarantee | ||
| Contact Us | Customize | |
| Be Our Reseller | Be Our Affiliate |
Why Choose Fintechee?
I have prior experience working as an Introducing Broker (IB), and frankly, it was challenging. Why? Because in the market landscape, there seems to be no room for an additional position like an IB. Why should the market pay for what appears to be a redundant role?
Let’s examine the typical tasks of an IB:
- Acting as an intermediary to facilitate the paperwork for creating new accounts for individual traders.
- Promoting brokers on their website through advertisements.
- Offering cashback from the IB fee to individual traders as an incentive.
These tasks seem straightforward and can be performed by almost anyone, making the role of an IB challenging to distinguish. So, how can we enhance the value of an IB? Some IBs have created trading channels or schools to attract subscribers, or they’ve shared their trading records with followers for copy trading – excellent ideas. However, there’s still a problem: it takes time to verify whether someone is a good teacher or if their trading strategy is effective.
Why not pursue a Forex broker white label partnership or start a brokerage? The answer lies in the high costs involved. The commissions and markups received by IBs from brokers often fall short of covering the initial funds required to start as a broker.
This is where we recommend collaboration. By joining forces, both parties can benefit from sharing resources and advantages. IBs contribute to the promotion of Fintechee’s WEB Trader through their market activities. Fintechee, in turn, authorizes IBs to expand their business by using our WEB Trader and showcasing their brands on our platform. With the exception of deposit/withdrawal, IBs operate much like brokers, making them less easily replaceable.
