Deciphering the Key Differences: Forex Trading Introducing Broker and Forex Trading White Label
The forex trading world is vast, and navigating its waters comes with its set of terminologies and business models. Two of the terms that often confuse beginners and even some veterans are 'Introducing Broker' and 'White Label.' This article will dive deep into the nuances of both these terms, delineating the key differences between them. 1. What are they? Introducing Broker (IB) An Introducing Broker (IB) is an individual or a firm that introduces potential clients to a Primary Broker. The IB doesn’t hold client funds. Instead, it refers clients to a Primary or Clearing Broker where the client sets up a trading account and trades. The Introducing Broker earns a commission based on the trading activity of the referred client. White Label White Label refers to a service or product that a company produces and allows another company to brand and sell as its own. In the Forex context, it means that a primary broker provides all the necessary trading tools and softw...