About Brokers

Not all FCMs or RB's are created equal!

The relationship between the RB and FCM’s

You have the choice of trading through an RB (Referring Broker) or directly with an FCM (Futures Commissions Merchant) so why not trade directly with an FCM and bypass the RB?

Let’s first understand the relationship between an RB and FCM. An RB is there to act as a liaison between you and the FCM; to assist and guide you when required. FCM’s are generally big businesses and they have difficulty concerning themselves with each individual’s success. The typical trader does not make it past the first few months and approximately 90% of all new forex traders will lose their initial capital in the first 90 days. FCM’s are aware of this and so long as they can replace the traders that fail with new ones, their profits will be assured. FCM’s rely on a steady flow of traders to keep their profits moving forward. While FCM’s can take profits from short term accounts it’s not in a RB’s interest to let your account fail. If your current RB isn’t as concerned with your success as they should be then its time to change to FXS!

How much does trading through an RB cost you? The answer is nothing! That’s right the cost of this relationship is negotiated between the RB and the FCM and has no bearing on the trader. Forex brokers make their money every time you trade and they pay RB’s a commission for sourcing and managing accounts. The introducer and the FCM are compensated by the spread between the bid price and the ask price.

The FXS trading advantage

FXS has been created as a natural extension of Forexsites. Whether you are new or you are a trader with some understanding of the markets, we can improve on your knowledge base. We have looked at many platforms and by choosing the platform available in FXS you are trading with one of the very best.