All About Introducing Broker Definition

The definition of a forex introducing broker (also known as a forex IB) is similar to a regular introducing broker, except that the forex introducing broker will introduce clients (generally managers and other introducing brokers) to forex dealer members (also known as FDMs) which are the firms which actually execute the off-exchange forex trading.

[Note: the term forex dealer member is given to those firms which are registered with the CFTC as futures commission merchants and who only engage in off-exchange foreign currency transactions.]

The Forex introducing broker can be either an individual or a firm; each individual person of a firm will also deemed to be a Forex Associated Person (also known as a Forex AP).

Both firms and individuals will need to through the registration introducing broker definition process with the CFTC through the NFA.

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