* Prices were extracted from Futuresource.com. All values, for 2001 and 2008, were rounded off – should be considered estimates. They are not precise. The purpose of this exercise was to demonstrate the volatility and price swings over the past seven years.

** The returns shown are based on a 1 Lot position with 100:1 leverage. The margin requirement is $1,000. This does not consider proper risk management.

***The return shown for Silver is based on the standard futures contract of 5,000 ounces. The contract size for Silver in the spot market varies depending on which broker or FCM you’re trading with.

Past performance is not indicative of future results. Risk of loss exists when trading Forex and Futures products. This chart is for informational purposes only and under no circumstances should be construed as an offer to sell or solicitation to buy any foreign currency or other derivative or over counter product. Trading in foreign exchange or other derivatives and over the counter products entails significant risks which much be understood prior to trading and may not be appropriate for all investors.  

Successful business owners from other industries are operating at a huge advantage. If you can take what made you successful and apply it to this industry, you will reach new heights as an IB. Innovation, creativeness, and imagination is the path for any successful endeavor.  

The sales techniques or approaches outlined below are applicable for any industry that is dependent on generating sales on a consistent basis. These methods have proven to be successful for many individuals and companies.  No matter what you’re selling, stocks, commodities, insurance or real estate, your role, as an individual, is building relationships and rapport with your clients. The strategies below have been very effective for many successful Introducing Brokers.

1) Introducing your personal network to the opportunities that exist in the Forex market. Professionals who already possess a rolodex of clients can draw on their network, building a book of business rather quickly.

2) Expanding your professional network, and introducing your new and existing relationships to the benefits of the Forex market. Not only can your clients profit handsomely in the Forex market, but many investors can enhance their overall portfolio through diversification. Successful business owners will participate in community functions, such as joining the local chamber of commerce or attending local community clubs. Many IBs will attend business conferences and events, such as Trading Expos. Regardless of the nature of your business, it is smart to engage with other business owners, as many of them are active investors.

 As large as the financial industry is, Wall Street is a very close knit community. Your contemporaries often travel and socialize in the same circles. In this profession, it is a good possibility you might find yourself working with other brokers or money managers in some capacity.  It is always advantageous for brokers, portfolio managers or anyone in financial industry to form and foster their reputation

3) The most effective, and most challenging is direct sales, otherwise known as cold calling. Cold calling has a negative stigma attached to it for several reasons, which is discussed in IB Insider. However, cold calling been time tested and successfully employed on Wall Street for decades. Global investment banks such as Goldman Sachs and Merrill Lynch to recently launched brokerage houses utilize this sales method. The largest, most recognizable brokerage houses and investment banks, have built their business on cold calling.

Brokers who are successful with this approach will have limitless opportunity. Cold calling is an art form.  There are some brokers who are natural and comfortable speaking over the phone while others struggle in the beginning. One critical mistake many IBs will make is they give up. Do not be discouraged. It will take time to hone your skills. We discuss how to build a brokerage, cold calling techniques, including sample phone scripts, in depth in our IB Insider.

Direct sales are not limited to cold calling. Other forms of direct sales are email and postal mail. Experienced IBs will send newsletters or send invitations for seminars or workshops. Money managers with a track record of positive performance will solicit their services to both retail and institutional investors.

4) Advertising and marketing to a specific niche market that you could be successful working with. As you become more comfortable with the FX market, you may find that you have a passion for trading the markets yourself, or educating others. In this case, you may expand the services offer to include managing your clients funds, offering training or educational courses, or providing trading suggestions to your client base. As you progress towards that level, the opportunities to increase your revenue stream could expand exponentially.

5) Introducing Brokers, who offer education and training, have done extremely well by arranging seminars and workshops for investors who are unfamiliar with the Forex market. Coordinating this effort can be achieved in several ways. IBs will place local advertisements in newspapers, radio or Internet postings. The idea is to invite 10 or more attendees, briefly discuss the Forex market and have them open a demo or live account. For knowledgeable and astute investors, experienced IBs will provide training on specific topics. Seminars are very a useful tool to bring on many clients at one time. For example, many IBs will hold workshops for as many as 50 people. If 20% of the attendees open a live account (10), and the average account size is $10,000, the IB will have brought in $100,000 in new business. If the IB is consistent and duplicates this effort each month, the IB will raise over $1MM for the year.

For additional information, including strategic advertising initiatives, marketing ideas, sign up for IB Insider .