Trader Leader

Choosing the Right Broker and Trading Platform: A Quick Guide

Choosing the right broker is essential to your success
Don't run for extremely high commissions. In the long run, you'll end up with less than you expected.

Competition among different brokers in the trading industry is quite fierce. This is why brokers do not hesitate to offer affiliates and IBs incredibly high commissions. Sometimes the values they offer can reach absurd amounts, such as 70% or 80% revenue share. Be realistic: these commissions look too good to be true, don't they? That's because they probably are not true. Don't sell yourself on promises of huge commissions, because that is likely a marketing stunt that come with many caveats.

Real and legitimate trading companies always have to deal with huge operational costs, which, among other things, include advertising, salaries, offices, customer support, licenses, legal services, payment services, dealing services, and so on.

It is simply not economically viable for any trading company to share more than 50% of its revenue with an IB. If someone promises you that, it is not because they are being generous, but because they are trying to trick you. Be careful with such promises, because there are definitely room for problems. For example, the company might try to manipulate statistics in order to make it seem that you are bringing in less profit than you actually are. Another way they can trick you is by offering high commissions for a very limited amount of time, and decrease them as soon as it is no longer in their interests. Yet another mechanism used by such brokers is calculating the commissions only after discounting broker expenses from your earned profit, which in the end will get you much less than what you were initially promised.

Make an extra effort and check the system you are working with by yourself. Make a deposit, negotiate a bit, and check the result from the affiliate side. If it seems like you are not getting what you were promised initially, it's better to abandon the broker right away than to do that after you already spent time and effort working with it.
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.
Transparency and Trust

Trust is something you build over years of cooperation, but transparency is the best foundation for a trusting relationship. You can make sure that a company is transparent if they inform you about their conditions in a clear and straightforward manner, without using legalese or complicated phrases.

If they often turn to legal and obscure terms, they are likely trying to hide their real intentions, which is often a bad sign.

Trader Insurance & Profit Guarantee

Brokers tend to promise you a share of the revenue, but they often forget to mention that, along with that, partners generally bear 100% of the risk.

This means that most brokers will often try to discount their losses with your traders from your personal profits. This quite often happens in the same brokers that promise you commissions that are too high to be true. After the broker discounts their losses from your balance, you end up receiving a tiny fraction of what your commission should be.
Always contact your account manager as soon as you register your partner account and ask all the hard questions about the cooperation they are proposing with you. Do they discount losses? Do they calculate earnings based on each trader's personal profit or on general profit? You will find out that these tiny details can make a huge difference in how much you will earn from them.
Trading Platforms

Choosing the trading platform you are promoting is the foundation of your success. Be sure of this: you will earn much more commissions by recommending a platform that is easy-to-use and that has everything your audience, that is, other traders, need.

Some brokers develop their own trading platforms from scratch in order to deliver a prime trading experience for their users. By doing this, the platform is fully customizable for their clients and features can be changed if lots of users are asking for it. The alternative is buying a ready-made trading platform. This is called a “White label” platform.

As you can understand, it's faster and cheaper to buy someone else's software instead of developing one yourself. However, that also means that the broker is not really able to change much of the design of the platform to accommodate to their trader's needs and desires.

The vast majority of brokers offer the MetaTrader platform for trading. It has been on the market for 15 years, and it does a fairly good job, but it can also be very difficult for new traders to get used to it, since most of the mechanisms are quite outdated. New users tend to prefer brokers with a better onboarding experience and easy-to-use trading tools.

Since both experienced traders and newcomers benefit from an intuitive and easy-to-use design, you might want to choose a broker that puts a higher value on user experience, such as IQ Option, our recommended broker. You can check their partnerships programs here.
We hope that with these tips you will be able to make an informed decision about which broker to work with.

Remember, if you want to be an introducing broker, you need to trust the platform you are going to cooperate with. You need to know that before you can recommend it to others, since this choice is going to affect all aspects of your new business.