Last week, I gave a helicopter view of the FX business in China, and this week I’ll go more into more depth about the Introducing Brokers, or IBs, in this exciting market.
We have just finished 3 successful days at the Shanghai Moneyfair – the biggest expo related to FX in China, with an estimated 200,000 visitors over the weekend, and with just a few exceptions, all brokers focusing on China were present on a big scale. At the event, roughly 50% of our meetings were with existing or aspiring IBs, showing the major importance of this distribution channel.
IBs in China
An IB is an individual or company that refers clients to a broker, and in exchange earns a referral fee. The referral fee can be a one-off fee per client, or a share in the broker’s profit throughout the lifetime of the referred client, also referred to as a rebate.
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