Forex IB is no longer pursuing high profits, these points are more attractive to them. Forex IB is no longer pursuing high commissions, these points are more attractive to them.
In the domestic retail foreign exchange market, introducing brokers (IBs) or “agents” is a very large business force and the backbone of the industry’s prosperity. In today’s socialized world, more and more people realize that through online Forex trading, there will be opportunities to obtain substantial gains. As a result, more and more clients are choosing to trade online through IB rather than have an investment relationship directly with a broker. It’s all based on trust.
Often, many overseas brokers have to rely on IB to quickly open up the market when they first enter China. As a result, IBs with large amounts of resources on hand are often regarded as “treasures” by brokers. However, IB also has certain conditions for choosing a cooperative platform.
Many IBs choose an “like-for-like” broker, usually measured by extra spreads, rebates and some support. There is no excuse, after all, IB engaged in agency business is designed to make money.
In the past year or two, the domestic retail foreign exchange industry has some unhealthy phenomena, such as agent collusion with customers malicious brushing orders, IB valet trading losses after the responsibility to brokers and IB to the broker’s office trouble and so on. These situations have created a crisis of confidence between brokers and agents and have prompted brokers to be more cautious about channel expansion.
Because some agents unilaterally pursue high profits, some bad brokers in order to cater to these agents, in rebates or add points to other formal platforms can not give the conditions, and even some black platform joint agents “pit kill” customers of bad events.
Of course, this is only some disharmonious “voices” in the industry, and it does not stop the development and progress of the industry. Many agents in order to adhere to the original intention of the dream, not blindly pursue profits. Instead, they focus more on brokers’ credibility, client capital security, and platform stability.
What could be more important than safe trading in the domestic retail foreign exchange market? When it comes to safety, one can’t help but think of regulatory qualifications. When many IBs come into contact with a new platform, the first sentence may be “Where is your company regulated?”.
It also illustrates the importance of regulation. So IB’s review of the broker’s regulatory status is the most important thing for investors to do. For example, many agents will ask, “Retail Forex broker AETOS Atos in the domestic agent to support this very ground gas, service is also very intimate, the client funds in Aittos is safe?” ”
In fact, there is no 100% secure trading platform in the world, only one that does not fit your own. From a regulatory perspective, AETOS has two of the world’s top regulatory licences, the Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC). Obviously, there is no problem in the regulation of funds.
Many excellent trading platforms usually have a good reputation in the industry. Given the special development environment in China, many brokers have very short “life cycles”. Several brokers are born every month, and several or more are dead.
From another point of view, IB will also look at and value the broker’s development history and time precipitation when choosing a cooperative platform. A good broker must have a solid history of development. Looking ahead, there are only a handful of brokers who have been working in the Chinese market for more than a decade or more, such as UBFX and Fuhui Group.
All in all, most domestic IBs have their own expertise in retail foreign exchange and have certain resources and good reputation, rather than short-sightedness. As mentioned earlier, these IBs are increasingly focused on platform security, stability and diversification, rather than simply chasing high profits. This is the progress of the industry, but also the inevitable development.