Introducing Broker

An introducing broker (IB) is an intermediary between traders and a forex broker. The IB does not hold client funds or execute trades; the broker handles all that. Instead, the IB sends new clients to the broker and earns a commission, typically a fixed amount per lot traded by those clients, sometimes a percentage of spread. Clients usually pay nothing extra for trading through an IB — the IB's commission comes from the broker's side of the trade. Reputable IBs pass a portion of their commission back to clients as a rebate.