IB vs. FCM

Why shouldn't you go direct? After all, a middle man must cost you money?

In nearly every other industry the answer to that question would surely be yes. However, Forex is like no other industry. Oddly enough, using an introducing broker does not cost you a penny!

Find that hard to believe? It seems that most traders misunderstand the point of an IB (introducing broker), or perhaps other IBs are just not getting it done. You have access to numerous FCMs (Futures Commissions Merchants). Each FCM will offer you liquidity and a trading platform suitable to meet your needs, won't they? Of course they will, but what are they not telling you?

Did you know that your success might not be in the best interest of your current broker? If you can envision a scale, perhaps you will better understand the following example. Every trade is one side of a scale, if one side goes up - the other side must go down. When you place a trade, someone somewhere is trading against you. The buyer on the other end of your sell is hoping that you are wrong.

You might not consider yourself enlightened, but what if the buyer on the other end of your sell is your own broker? Do you still think your broker wants you to succeed?

An IB concerned with your success should offer you information of this nature. If they are not, then perhaps you should go direct. Most FCM's do offer 24 hour support, online forums, some even offer free training - but, how many trading secrets do you think the buyer on the other end of your sell is likely willing to divulge?

FCMs unlike IBs may not be as concerned with long term relationships. The typical trader does not make it past the first few months. In fact, approximately 90% of all new Forex traders lose their initial capital in the first 90 days. FCMs are aware of this, and for the most part unconcerned. As long as they can replace the old with the new their profits move forward. FCMs rely on a steady flow of new clients. Understanding the above should bring clarity to what may otherwise be a rather confusing relationship. IBs act as a liaison between you and the FCM. The cost of this relationship is negotiated between the IB and the FCM and has absolutely nothing to do with you. You will always have the option of going direct. The advantage of using an IB can be found in many aspects, most importantly; introducing brokers are dependent upon your long term success. While FCMs can profit from a short lived account, IBs on the other hand do not earn enough compensation from the FCM to let your account fail in a few short months.

Trading Intl offers you a list of products and services you will not find elsewhere. Why should you do business with an FCM, a charting company, an alerts provider, and the list goes on? Trading Intl offers all of the above, one place, one friendly staff, one firm that is interested in your success. Most importantly, we will always offer you an unbiased connection to the FCM of your choice. Feel that your current broker (FCM) is not right for you? No problem; we will find an FCM that does meet your needs.

What is the catch?

Well, there is no catch. If you are not clear on why we offer the services we do, also not a problem; we are glad to explain. We have nothing to hide from you or any other client.

As most traders know, brokers in the Forex market make their money when you trade (3-5 PIPS depending on the broker). Every time you place a trade, the spread is taken right off the top. So how does Trading Intl get paid? Simple, if for example your spread is 3 PIPS; the FCM takes 2 and we take 1. Your 3 PIPS are coming off the top whether we are involved or not. Nothing changes for you. Nothing cost wise that is; when it comes to products, services, your knowledge and success - everything changes!