Introducing brokers are a critical component within the retail FX industry worldwide. We look at the flaws of the current model and why brokers should stop giving IBs the short shrift, as well as if the finely honed Chinese IB model could work in other regions of the world
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A very incisive and comprehensive debate on how the current IB model means that all three parties – the client, broker and IB, end up losing long term, and why the model must evolve
Meir Velenski looks at the numbers game played by many b-book brokerages when working with all-important IBs, and how to resolve the conflict of interest between introducer and brokerage
The level of mistrust that now blights the introducing broker model means that the IB and the provider are at odds to each other, and therefore neither party can grow that relationship to the max, says Meir Velenski
“Spreads tight as they are will become tighter. In the real world it’s the false spread on the B- Book operators actually causes the client to lose. If the client is marked up the the chance of the Client losing is even greater” says Meir Velenski as he disseminates the IB model and how MiFID II could see an end to it.
It’s not enough these days to just cover the MT4 white label cost for very important strategic partners and IBs. We take a look at what high quality IBs with top level client bases and 30 years experience are finding lacking in the current IB model, and how this can be remedied