When you are growing your brokerage globally and trying to have a wider reach to acquire more clients from around the world, you need to have a strong IB network. While setting up offices in new regions might be a good idea, it could create an unnecessary economic burden.
That is why for FX brokers of all sizes, and especially start-ups, investing early in a functional IB solution and nurturing your affiliates is one of the easiest ways of ensuring continuous business growth.
The IBs usually have a better understanding of the local market patterns, bring their own clients, and can reach potentials easier. Furthermore, introducing brokers are trusted by their local traders more, and in some countries without an IB you will not be able to access the market at all, for example in Asian regions, where IBs play a vital role in acquiring new traders.
Meeting the requirements of IBs
An IB is usually an individual working as a freelancer or a contractor, receiving a commission off their clients’ trading activity.
We have already concluded that IBs can play a big part in your business’s growth success. To work with an IB a brokerage needs to meet their specific requirements and offer all the necessary tools, marketing materials, and competitive compensation program. We will go through some essential offerings that will cultivate your partnership into a long-term one.
Dedicated IB portal with a complete overview of referrals
It is not only your traders that expect an outstanding trading experience, UX and customer service, same applies to IBs as well. Potential partners will review and test your IB platform to see if it meets their requirements and offers everything they need to manage their business and clients successfully.
A functional and comprehensive IB portal is crucial for your IB's success and must offer a comprehensive overview of their activity and that of their clients and sub-IBs in an intuitive way. All trading and account activity shall be tracked and monitored through detailed real-time reporting that provides the necessary intel about each IB’s business, allowing them to keep track of their performance and profitability, and being able to make informed decisions proactively.
Consequently, it is important to keep your technology up to date and incorporating the latest technology advancements. Professional IB management systems will provide automation, streamlining some of the most challenging and resource-intensive tasks in the partner management process (i.e., commission pay-outs, client allocation, etc).
Create loyalty with a competitive compensation scheme
Whether you are just starting out or already have an existing IB program, continuously conducting market research allows you to create an attractive offering to draw potential IBs to your brokerage.
A good IB management tool comes with advanced capabilities that allow you to create complex multi-tiered commission schemes for each IB, with different commission types available (i.e., based on lot, percentage, etc), giving you the flexibility to assign different commissions for different IBs, for different periods of time, trading conditions and more.
IBs and affiliates bring in high volumes of business for brokers because they can introduce many clients. So, instead of focusing only on occasional campaigns to attract individual traders, you can work more sustainably and partner up with a multitude of IBs and affiliates on favourable conditions, offering attractive compensation schemes. These high impact partnerships can guarantee a steady increase of new accounts and result in meeting your financial targets.
Spend less on client acquisition with customizable marketing materials
Working as an IB is a business on its own, and as a brokerage you want to help simplify things for your partners. The old ways of making traditional phone calls and holding offline seminars are not as effective anymore. With digitized operations, IBs can create online promotions that suit today’s clients’ preferences and help them to reach a large audience effectively.
With customizable marketing tools such as banners, registration forms, templates, and IB links, IBs can create location-specific marketing campaigns which they can share online on social media, forums, groups, and more. Ultimately, IBs should only focus on referring traders while letting the broker do the rest.
YOONIT IB/Affiliate solution encompasses a powerful IB management system that helps you create, manage, track, and analyse your partnerships, and boost your IB acquisition worldwide. Among other features it comes with advanced capabilities that help you customize and automate your partner programs and commission pay-outs, as well as set up unlimited multi-level IB and sub-IB commission schemes, streamlining some of the most challenging and resource-intensive tasks and allowing you to globally build your client base with ease.
About PLUGIT
With over a decade on the frontlines of the fintech industry, PLUGIT is renowned for its innovative technology that helps brokers and their stakeholders worldwide to become more profitable and operate their businesses more efficiently. We offer solutions for partner management, risk management, bonus management and money management, as well as CRM. Our flagship product YOONIT encompasses a modular management and trading support system, comprising robust solutions and back-office tools for MT4 comprising robust solutions and back-office tools for MT4 and MT5 brokers. Contact us to book a live demonstration.
