As with any other business, you need to have a business plan. You need to set goals, have objectives, and execute your business plan. The more prepared you are, the more likely you will be successful.

Once you have determined what products or services you would like to offer, you must now focus on developing your business. The following steps are essential before you launch your operation.

1. Develop your business plan on paper. Outline every goal and objective you have with your new venture. Be specific and designate a timeline to achieve your goal(s).

2. Contained in your business plan, you should have a clear marketing plan. Marketing and advertising campaigns are crucial to an Introducing Broker’s success. A step by step process of this plan should be included.

3. Continuing Education – the Forex market is continually evolving. Learning never ceases. Successful Introducing Brokers will be knowledgeable on the market, industry and competitive landscape. We encourage IBs to engross themselves into the FX industry. Attend trading expos, stay in tune with industry developments and demonstrate expertise in your business. The enthusiasm and passion you exude will captivate your audience.

Before writing your business plan, you need to ask yourself several important questions:

1) Are you setting up your IB as an individual or company?

2) What products or services do you plan on offering?

3) Will you be working with a partner or partners? 

4) Do you plan on opening an office? Do you plan on hiring and training new employees, “Forex brokers”?

5) During the initial launch phase, will this be a full or part time venture?

6) If you plan on offering Managed Account Services, who will trading the customer accounts? Will you or your partner(s) be trading customer accounts? Do you want to outsource the trading to a third party?

7) Define your strengths and your weaknesses? If trading is one of your strengths, you will need someone to assist with the sales process. If building relationships and rapport with clients is one your strengths, you will need a money manager to trade your client funds, assuming you will be offering Managed Account Services. The challenge is finding a partner, an employee or a third party to compliment your weaknesses.

IB Portal is in the process of finding professional money managers who have audited track records. Introducing Brokers, who would like to include Managed Account Services, but are not ready to trade their clients funds, always have the option of outsourcing the “Trading Agent”. Many IBs prefer to focus on generating business as opposed to trading. Unfortunately, one of biggest mistakes new IBs will make is try to do both. What eventually happens is you will open a few accounts, and you will trade those accounts thinking you can do both, continue building your business through sales, while at the time, trading your clients funds. Unfortunately, in due time, you will find yourself glued to the computer. Hopefully, you’re on the winning side. But nevertheless it will take away your focus on building your business through generating new accounts. It is always good to separate the two, sales and trading. If you’re working with a partner, it will be helpful if one concentrates on sales, while the other focuses on trading. However, unless you have the discipline, this can and will be a distraction. Consider working with a professional money manager to manage your client funds. Access IB Insider  for a list of qualified Money Managers (MM). In addition, finding the right MM can work for you in more ways than one. A good MM can potentially double or even triple your production. Visit IB Insider.

Investing into your business

1) Website & Logo - Successful Introducing Brokers understand the importance of having a quality website. The website is the face of their company. Deciding on who will design your website is a personal preference. Web developers who offer “template” websites charge lower fees. An example website developer who offers templates is Iexodus, www.iexodus.com. Iexodus offers a variety of solutions, including 20 website templates, specifically designed for Forex Introducing Brokers. The cost for a fully functional website is $600.  You can view all 20 templates under “Resources”. Turnaround time for one of Iexodus’s websites is less than 72 hours.

Similarly, a strong corporate identity is just as important as a good website. Your corporate identity starts with your logo. Logo design can be as low as $20 to as high as a few thousand dollars. Keep in mind, your logo will be incorporated on your website, business cards, stationery and possibly co-branding solutions. Iexodus will work with you on establishing a strong corporate identity at a reasonable cost.

2) Marketing Literature – FCM’s can provide Introducing Broker’s marketing literature, free of charge. If you prefer a customized solution, Iexodus can assist you with the design.

3) Advertising – First and foremost, you must decide what products and/or services you will be offering. Based on that decision, you can then tailor your marketing strategy around the product and services you’re selling. For example, if you intend on focusing on educational seminars, you might consider advertising in local newspapers or websites. Keep in mind; depending on the business you’re conducting with your broker (volume), you can potentially work with your FCM on a joint marketing or advertising effort.

4) Setting up a Brokerage House – If you plan on taking your business to the highest level, then you might want to consider launching a brokerage house. The most successful Introducing Brokers will set up an office, hire and train a team brokers and open hundreds of new accounts month in and month out. Of course, this option can be very expensive. However, you can slowly build towards this level. IB Portal provides a step by step guide on how to build a successful brokerage house in IB Insider .