Skip to content Skip to footer
The ever growing poppularity of stck trading has brokers like Tradeview expanding their offer to meet their clients' needs

Introducing Brokers: Where to go after ESMA

So lets take a step back… to a time pre ESMA, pre MIFID II, an environment for traders where the sky was always blue, the sun was always shining and brokers offered golden handshakes just for signing up as an IB.

As an Introducing Broker you could be paid a split of all client commissions plus some could also get paid on their clients cash deposits and you didn’t need to do a thing for it but introduce the client.  The market offered huge leverage allowing for high commissions and therefore sizeable commission splits went to the IB’s. Life was good.

Fast forward to early 2018 with the introduction of MIFID II, and EU brokers have more stringent requirements for submitting financials, transparency of profits, providing best execution and more, ultimately resulting in tighter spreads.

The IB therefore has a lot less scope for profit. Brokers can’t entice IBs with ongoing commission splits unless that IB goes through the process of continually providing additional services and then needs conditional approval, their only option is to offer to pay a small introduction fee as a one off which likely isn’t a sustainable living for an IB.

“You would think that this might be the end of the story but from every problem comes a solution…”

Now we get to August 2018 and ESMA’s margin changes are thrust upon the industry, less margin, therefore less potential profit, less trading and therefore less commission generated. This is potentially the death knell for any IB that was still able to make a living even after MIFID. There is very little left for the IB or the client to work with if they are either from the UK/Europe or using a UK/European broker.

You would think that this might be the end of the story but from every problem comes a solution. Tradeview continues to expand with its improved product offering, 24 hour client service, pushing a reinvestment into technology and offering the cheapest spreads on many instruments. Bitcoin is still being offered at less than a ten cent spread.

They can still offer margins of 200 or 400 to 1 so that clients can trade with freedom and the IB doesn’t need to prove themselves worthy in the eyes of MIFID so can focus on generating leads and creating a business model with less restriction and more options for their clients.

Related: The ESMA and Its New Regulations
Related: Will MIFID II Drive Business Away from Europe?

For many IB’s who haven’t yet heard of Tradeview this is the time machine back to those days of blue skies and sunshine. An option for you to drive business and reap the rewards without the recent regulatory restrictions. So if you are an Introducing Broker with a thousand clients, a Master IB looking for a new home or were just looking to start with a handful of traders then this is the online broker you were looking for.

Tradeview have hundreds of IB’s of all sizes from across the globe who have put their trust into a long-standing broker who puts their clients first and offers them the best trading conditions. Once signed up the IB can receive free assistance with marketing material and web design as well!

To find out more about signing up as an IB or how you could start to make a living as an Introducing Broker please click here or feel free to contact me on the below details.

Click here or contact me for more info !

Show CommentsClose Comments

Leave a comment

0.0/5

Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.
Website: www.tradeviewforex.com

Tradeview Asia Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.
Website: www.tvmgloballtd.com

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.
Website: www.tradeview.eu

Tradeview Financial Markets S.A.C Global

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.
Website: www.tradeviewlatam.com