How IBs Get Paid for Managed Account Business
The diagram below shows how IBs get compensated for the managed account assets they raise.
When an IB convinces a customer to open a managed account (learn more about managed accounts), the customer first opens a regular forex account and the portfolio manager is given LIMITED power of attorney to trade the customer's account via a specialized money management and accounting software from the brokerage firm where the customer's account is opened.
As a result, the managed IB's compensation consists of a percentage of the monthly profits obtained by the manager and a rebate or commission from the transactions or trading volume generated in the client's account.
If you or your company have access to wealthy investors, raising funds for a good money manager as an IB can provide you with a substantial amount of cash flow.
Whether your business is in insurance, brokerage, or real estate – whether you run an investment advisory firm or have access to wealthy individuals, you can benefit immensely by offering managed FX services to your customers.
Right now, many investors are looking for alternative investments that can offer attractive returns, and are not tied to stocks or real estate.
We have two unique ways to help our introducing brokers increase the amount of managed business they do.
- Live Online Broadcasts with Professional Traders – Your clients can listen to a professional money manager talk about the global markets and managed money via our online meetings. Clients who attend will feel a lot more at ease about the entire managed account program. It is almost like meeting the manager face to face; something that is unique to our program and truly an impressive experience for investors. As a result, IB's will be able to increase their account closing rate and the size of the accounts opened.
- One-on-One Conference Calls or Meetings with the Manager – If one of your clients is considering a sizable initial investment in a managed product, we could schedule a phone conference with your client and the manager, no matter where in the world your client is located. If it makes economic sense based on the size of the allocation, one of our representatives could travel to have a personal meeting with your client. The manager might also be able to schedule a face-to-face meeting, but this is determined on a case-by-case basis. This will make it easier for you as an IB to raise managed assets.