Regulation and Reputation
People used to think that regulation is what really matters, but in fact it is quite easy for brokers and trading companies to get a license in different countries. As a matter of fact, European regulations actually make it impossible for IBs to work in the European Economic Area, so its regulations will never allow introducers to work with these companies in Europe.
The broker's reputation and track record is what you should consider instead. Since trading is a high-risk industry, you will often find a few or many bad reviews for any given brokers, depending on where you look, often relating them to different kinds of scams. Large companies don't keep an eye out for this problem, but unfortunately, no one can help it: as trading involves a significant amount of risk, negative customer feedback is very common in the industry. Some dirty marketing tricks can also boost these results for competitors on Google, so you will rarely find accurate information there.
What you need to do is take a closer look at the company you are interested in and do some research on your own.
During your research, try to find answers to the following questions:
- When was the company founded?
- Tells about their history and shows the progress made?
- How many active customers (traders) do they have?
- Does the website look professional?
- How active is the company on social media? Do they have a solid community? How do they handle public communications?
- Do they have any educational material? Is it high- or poor-quality? Do you have to pay for it?
- How fast and helpful is the company's customer support?
- Do they invest in advertising, sponsorship or charity?
You can extend this list as long as possible, but the general point is this: you must make sure that the broker you are promoting is a legitimate business with serious people working in their customer support, social media, and marketing.