Dear Members -
As Swaps Dealers began to register this month, I started thinking once again about the current state of Introducing Brokers (IBs). An IB’s role in the industry is to have direct contact with the market end-user - soliciting and servicing the customer.
But what is the value of an IB to a customer? Why do customers open their accounts directly with IBs? Well,
- Your IB helps new investors understand the risks of the futures market.
- Your IB has the training that can prevent a customer from making an easily avoidable, costly mistake during the order placement process.
- Your IB has the experience necessary to evaluate market moves, and to spot opportunities a customer might miss.
- Your IB does or has access to a great deal of research, including cash markets and global situations, which customers don’t typically have.
- Your IB stays up to date with regulatory changes that may have an impact on your customers’ trading plans.
- Your IB has the expertise to work with the customers to develop a strategy to meet his/her needs including using options, forex and managed accounts.
These are just six obvious ways IBs add value to their customer relationships. Obviously, IBs play an import part in this business. So, rock on IBs! The industry and your customers need you.
Best regards,
Melinda
