How to Introduce Broker Forex
Introducing brokers is an important part of the forex, or foreign exchange, trading community. The introducing broker acts as an intermediary between clients and forex dealer merchants. With dealer merchants handling the trading side of the business, the introducing broker is free to provide customer service and solicit new clients.
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Things You'll Need
- Series 3 license
- Series 34 license
- Money (for dues)
- Completed Form 8-R
- Fingerprint card
Instructions
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Successfully pass the Series 3 and Series 34 exams. The Series 3 or National Commodity Futures exam covers futures trading on an exchange. The Series 34 or Retail Off-Exchange Forex exam focuses strictly on forex. The NFA provides information on both of these exams on their website (see the Resources section).
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Submit a completed form 8-R and fingerprint card to the National Futures Association (NFA). The form 8-R can be completed and submitted electronically through the NFA website. Fingerprint cards are available by request. Additionally, applicants living in Chicago may complete fingerprint cards at the NFA office for a fee of $15.
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Pay applicable dues. All Forex IBs must pay a $200 registration fee to the Commodity Futures Trading Commission (CFTC). This is the federal regulatory body that oversees futures and forex trading. Also, forex IBs are required to pay $750 in annual dues to the NFA.
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Conduct business. The job of a forex introducing broker is to introduce clients to a forex dealer merchant. First, find a dealer merchant to work with. The dealer merchant accepts client funds and provides forex trading services. Second, find clients. In return for referring clients to the dealer merchant, you will receive a percentage of all revenue generated by clients.
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References
Resources
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