Partnership ModelsDepending on what you want to achieve in your business, there are four possible arrangements you could reach with IG Markets. Some of these are straightforward to implement, while others require considerable investment of time and effort from both of us. Both parties need confidence that the relationship would be significantly profitable to justify its undertaking. To work out which partnership model suits you best, consider the following questions: Is your role simply to introduce a client to IG Markets?The most common and successful type of partner with IG Markets is the Basic Introducer, who simply brings our service to the attention of a wider group of speculators. He may know the prospective client or have a particularly effective marketing channel, such as a website or a schedule of educational seminars. See Basic Introducer for more. Do you have any involvement in managing the client's trading?Some partners offer themselves as account managers, taking power of attorney over their clients' accounts and trading for them. This arrangement requires specific IT solutions and a legal framework. See POA Trading. Are you a regulated broker who already handles client funds, transactions and account opening?The CFD product is increasingly being taken up by brokers in more traditional areas, like equities or futures. The broker may want to keep the client relationship, but cannot easily offer the full range of services that IG Markets has developed. We can arrange a partnership whereby the client management remains with you, while the client is nominally held by us and the associated risks of market-making and credit decisions are our responsibility. Do you need to brand a CFD offering, and to what extent?For large institutions with a developed brand and existing client base, we are able to create an online trading solution tailored with the company's logo, colours and contact details. See White Labelling. Are you already licensed to offer CFDs?If you currently have a CFD capability, you may be looking to expand your range of products or software tools via IG Markets. It may be that an Omnibus relationship is appropriate, where the clients operate sub-accounts in your name at IG Markets, leaving account opening and margining as your responsibility. You should bear in mind that some models of partnership, while seeming to offer greater benefits, place far more demand on the introducer's resources. Acquiring a branded CFD trading site requires the introducer to be able to offer the back-office and customer-service solutions that clients will expect. To gain a CFD licence the introducer is required to have a competent margining procedure for the risks involved. Any questions? |
Online TradingL2 Dealer |