A business is an economic activity that is engaged in, with the aim of the venture being to make money and declare profits. However, many retail traders do not see forex trading as a business, which is why they are particularly careless about how they handle their trading.

Forex trading as a business, can be done in several ways. It is not only the core component of placing trades in the market that constitutes the business aspect of forex trading. There is another business model that can be fashioned out of forex trading, and this is the introducing brokerage aspect of forex trading.

Forex Trading as a Business: Introducing Brokerage Services

One way of participating in forex trading as a business concern is by working as an introducing broker. An introducing broker is someone who enters into a partnership agreement with a forex brokerage firm to “introduce” or refer clients to this broker in exchange for a commission. The commission structure is usually performance based though it is possible for persons working as introducing brokers to negotiate their own rates.

All the marketing that is done to bring in clients to the broker is handled by the introducing broker. This is where the introducing broker has to be very careful so as not to pour water into a basket; wasting funds in untargeted advertising without bringing in returns. There are several ways that an introducing broker can bring in clients successfully without spending so much money. Some of these are as follows:

1)      Setting up a forex trading blog or website, and drawing a large viewership. This requires a good knowledge of SEO techniques so that your blog can show up on the first page of Google. That way, an introducing broker can build quite a large following and from this traffic, it is possible to recruit traders into the platform of the introducing broker’s parent brokerage firm. Forex trading is one activity that always generates attention and traders are always looking for sources of information that will enhance their trading.

2)      Hosting forex trading seminars. This is one direct way of recruiting clients for an introducing broker. In addition to making money from seminar fees, the attendees can be enlisted directly by the introducing broker, who offers to open accounts for them to take advantage of the seminar information. Online webinars are another way of conducting seminars. If the introducing broker has been able to build a well visited blog as described in (1) above, it is possible for him to advertise his webinar and charge a small fee per participant. Imagine charging $30 and getting up to 300 participants in a webinar; that would be $9,000 from the webinar alone. Now imagine a situation where 100 of these open forex accounts and each trader generates $20 in trading commissions for the introducing broker every trading day. That would be a total of $2,000 in income for the introducing broker, every trading day, and $40,000 revenue a month.

If you have not started to view forex trading as a business, then you need to start doing so now and fashion out ways of getting your own share of the $4.2trillion that flows through the market everyday.