IB GUIDE

JANUARY 2021

S U C C E E D W I T H P F X

IB GUIDE | SUCCEED WITH POMELO FX WWW.POMELOFX.COM

 Open Account Demo Account

Page 3. Introduction
Page 4. What is an Introducing Broker
Page 5. How does an IB make money
Page 6. Who can become an IB
Page 7. How can IB's gain clients
Page 9. Who are "ideal clients"
Page 11. Converting interest into clients
Page 12. How to retain clients
JANUARY 2021

Page 13. Creating an IB business plan

Page 15. The growth & opportunities in technology
Page 16. Tips for success
Page 17. Look after your clients & your clients will look after you
Page 18. Benefits of working Pomelo FX
Page 19. A bit about Pomelo FX
Page 20. Becoming a PFX IB Partner
Page 21. Educational Services & Solutions
Page 22. Trading conditions
Page 24. Start trading
Page 26. Contact us

IB GUIDE | CONTENTS WWW.POMELOFX.COM

 1. Introduction
Welcome to Pomelo FX

First and foremost, welcome to Pomelo FX, and thank you for By the time you have finished reading this guide, you’ll have a
considering our IB programme. full understanding of our programme and be ready to get
JANUARY 2021

started!
Becoming an “Introducing Broker” is an incredibly exciting
opportunity and one that has limitless upside potential for So, whether you are a full-time networker, looking to run a
those who apply themselves. Our obligation at Pomelo FX is stand-alone business, or supplement your own trading, this
to provide you with all the necessary tools and support to truly is a fantastic opportunity and we at Pomelo FX are
help you succeed as a partner within our brokerage. committed to supporting you every step of the way.

How successful you are as an IB will depend on a number of We thank you once again for your consideration and should
factors, of which we will go into detail in this guide. We’ll you have any questions please do not hesitate to get in
cover every aspect of our IB programme, so you understand contact with our IB Partnership team.
exactly what it is, how it works, your role within our
brokerage and how you can embark on this exciting journey.

IB GUIDE | INTRODUCITON WWW.POMELOFX.COM

 2. What is an introducing broker
The term “Introducing Broker” or “IB” originates from the commodity futures market, however, since the mid-'90s it has grown
increasingly popular in the Spot Forex market because of the rapid growth in popularity it has experienced.

Essentially an Introducing Broker (IB) directs new clients (customers) and introduces them to a broker firm. Depending on the
broker firm, the introducing broker can work in any financial market stocks, forex, futures, or any other financial commodity. In
return for sending individuals to a brokerage, the IB receives a commission. In Forex, for example, this is normally an agreed
JANUARY 2021

amount between the broker and IB and a share of the spread or commission charges by the brokerage.

“Retail traders” can now access global markets and profit from them in the same way that investment banks and other large
financial institutions can. With the development of technology, online trading has never been more universally accessible,
and with barriers of entry being affordable to most this presents a wealth of opportunity for IB’s to offer their services, as
they can now partner with credible and reputable brokers with better resources and offer a larger portfolio of products and
services.

We, at Pomelo FX, treat every single one of our IB’s as a valued partner to our business, and it is in our best interest to provide
you with all the support you need to become a successful IB. Whilst running an IB business takes prudent planning and precise
execution, we will handle the infrastructure of your business, so you can focus on introducing clients to our platform.

IB GUIDE | WHAT IS AN INTRODUCING BROKER WWW.POMELOFX.COM

 Open Account Demo Account

Introducing Broker acts as an affiliate partner to the broker. Their primary job is to refer new traders to a
broker. In return, the broker agrees to pay the IB a commission for each new trader that opens an account
and transacts with real money on the platform. Although the process of referring a client to a broker is
easy, introducing brokers are only paid on actively trading clients.

Let me use a familiar example to explain the IB’s role. In real estate, there are real estate owners who seek
out the services of real estate brokers.
The brokers in turn employ a network of well-connected individuals who act as referrals. These individual’s
job is to find people or organizations who might be interested in purchasing real estate. If the referral buys
the real estate, the owner pays the broker their commission. The broker in turn shares a portion of this
commission with the individual who referred the buyer.

Once you become an IB, an agreement is made between the introducing party and the brokerage on how
much commission they will make for every successful, closed transaction that qualifies on each of their
client's accounts they introduce. By charging the client a fee on the spread or commission for each trade,
the brokerage will take their money from here, of which a portion of the commission charged will then be
allocated accordingly to the IB.

Typically, the broker will offer an amount for every lot size that the client trades on their account. This is
the most common and well-known model, and also the most simple and effective way to calculate and
distribute commissions. The larger the volume traded by the client(s), the greater the commissions
generated for the IB.

HB | HOW DOES AN IB MAKE MONEY WWW.POMELOFX.COM

 Open Account Demo Account

4. Who can
become an IB

What makes being an IB so attractive is that Networkers & marketers Even if you don’t possess much trading knowledge, there is
more or less anyone can become an Entrepreneurs a plethora of free resources, courses, and sites you can use
JANUARY 2021

introducing broker. Of course, the more Profitable FX Traders to arm yourself with a basic fundamental understanding.
knowledge and experience you have will have FX Traders and analysts with an online As with most things in life, you get out what you put in,
its advantages, but ultimately regardless of following and often we find that those who are consistent and
the aforementioned, with the right support, Financial Services or Advisory/Asset constantly active are the IB’s who go on to achieve great
mindset, resources, and tools in place, even Management Firms heights of success with us. We here at Pomelo FX will of
those with no experience can achieve great High-Traffic Websites course help wherever we can, and we urge all our IB’s
success as an IB. That being said, below is a Trading Rooms, Educational or Signal never to suffer in silence and to come to us with any help
list of particular individuals or entities who Providers they require.
tend to have the greatest success as an IB: Businesses with Trusted Relationship with
Wealthy Investors It can seem for a lot of people an arduous task, but as soon
as you refer one client you’ve done the hard part. Word of
mouth is still the greatest form of marketing and
advertising, and guess what... It’s 100% free and easy for
you as the IB because the lead is already nice and warm for
you!
IB GUIDE | WHO CAN BECOME AN IB
 5. How can Introducing Brokers gain clients?
There are many ways in which you as an IB can generate leads, which in turn become actively trading clients under the
Pomelo FX trading platform. Of course, for most, rather than try as many of them at once, most IB’s tend to focus on one or
two strategies, to begin with. What is most important to highlight is the need to demonstrate expertise, credibility, and
authority to your prospective clients. A simple website with a flashing banner that says “Join broker... NOW” wouldn’t qualify
any of the above. However, a well-presented site that is carefully articulated and informative would give any IB an edge over
most of their competition. Always put yourself in the shoes of the client and ask yourself “would I trust this site”. Below are
JANUARY 2021

some platforms and strategies you should consider. Which one’s appeal to you most will be down to you, however, we can
at least point you in the right direction:

Social media Search Engine Optimisation (SEO)

Paid advertising such as Facebook, Instagram, Google etc. Reaching out to existing networks of clients/institutions
Forum based sites Networking events, seminars, and local business meet-ups
Educational and/or signal based services Review sites
Blogging and vlogging Trading groups
Email marketing

IB GUIDE | HOW CAN INTRODUCING BROKERS

WWW.POMELOFX.COM
GAIN CLIENTS
 Open Account Demo Account

5. How can Introducing Brokers gain clients?

Continued.
JANUARY 2021

If you were asking us what the best method would be, we Here at Pomelo FX, we offer a suite of tools and resources for
would always point you towards marketing online as opposed you to get started with, including landing pages,
to off-line, at least at the very start of your IB career. So long banners/logos as well as e-books, and guides on how to
as your offering is both appealing and trusted, you can reach a create successful online marketing campaigns. Our team of IB
global audience and thousands of potential clients with even managers also work intimately with our active IB’s and are
the simplest advertisements. readily available to offer their assistance whenever required.

IB GUIDE | HOW CAN INTRODUCING BROKERS GAIN CLIENTS WWW.POMELOFX.COM

 In terms of who are the ideal clients, of course, there is more of an attraction towards
Open Account Demo Account established market trader’s vs those who are new or less experienced. However,
there is no strict right or wrong way of doing it, but as time goes on you may want to
consider focusing more on “quality” rather than quantity.

6. Who are the

JANUARY 2021

“Ideal Clients”
Where some IB’s spend their time and energy looking for “big whales”, others perhaps
look to target the smaller, newer traders. Whilst one IB aim is to have fewer clients but
greater profits, another one could be to get on as many clients as possible and making
smaller but more frequent commissions. What type of client you approach isn’t what's
important? What is important is the amount of commission you make from each of
those client’s vs the time and resources you put in to convert them. For example, you
could make $500 a day from just one client, or you could make $100 a day from 5 clients.
We tend to find that the IB’s who are most successful, at least in the early stages strike
a balance between the two.

IB GUIDE | WHO ARE THE IDEAL CLIENTS WWW.POMELOFX.COM

 Open Account Demo Account

Of course, there are benefits of introducing traders who are already established over those who are new
and inexperienced. Established traders who, let's say have already been trading for over one year tend to
have gone through the process of winning and losing and more than likely have established themselves a
profitable trading strategy. This of course means that you as the IB will, in theory, earn more commission as
the shelf life of established traders tends to be much longer. And if they are consistently profiting over
both the short and long-term, then so are you. There is also the added incentive that good traders in
theory have better affordability and will often deposit more into their trading account, thus increasing your
commission as an IB.

Many new traders also tend to dip their toes into the water, starting off with much lower deposits into the
platform. These types of traders also tend to get a lot more frustrated as they don’t understand the
markets as well as someone who has been trading for a period of time already. Losses are just as much of a
part of trading as winning, a mindset which many traders fail to adopt, even the more experienced ones!

Also, do bear in mind that people tend to “hang out” with those that are similar to them. Meaning that
someone who has been reading for 5 years successfully probably knows others who do as well. The same
principle applies to those who are just starting out who might know others who are interested in trading
but not quite yet pulled the trigger. As long as you, the IB can demonstrate confidence and knowledge to
your potential clients, there is no reason why you cannot and will not introduce both experienced and new
traders and earn from both!

IB GUIDE: WHO ARE THE DIEAL CLIENTS WWW.POMELOFX.COM

 Open Account Demo Account

7. Converting interest
into clients
"Confidence is not “I will profit on this trade.” Confidence
is “I will be fine if I don’t profit from this trade."
JANUARY 2021

We have already touched on previously some of the personal traits you, as an

IB, should possess and how you need to come across to your potential clients.
Developing relationships is also very important and giving away as much
valuable content is equally important. Managing your pipeline, generating
leads, and converting those leads into clients will largely depend on what
strategies and platforms you implement. How long it takes a lead to become
a client will also depend on many factors but as long as you keep your activity
high and consistent and position yourself correctly with the right message and
marketing plan, success will follow, and we will help you every step of the
way.

Here at Pomelo FX, we have created a number of e-books and guides for you,
going into the more specifics of each marketing strategy and how best to
utilize them effectively and efficiently.

IB GIIDE | CONERTING INTEREST INTO CLIENTS WWW.POMELOFX.COM

 Open Account Demo Account

8. How to retain clients

Once you have done the hard work and converted your lead into a client,
it is in your best interest to help support them where necessary and to
offer guidance on a regular basis. By having clear communication with
your clients and building on your existing relationship, this, in turn, will
ensure that your client trades happy and of course, you earn more
commission.

Some IB’s look to introduce large numbers of clients without paying much
attention to aftercare. This model has proven to be ineffective in the
long-term and results only in very short-term gains and a constant uphill,
unsustainable struggle for the IB. Delivering exceptional service levels and
support to your clients is by far a better business model and will keep
clients actively trading for longer, which in turn enables you to also earn
commissions longer. Here are some ideas on how you can add true value
"Be sure to have a retention plan in place. IB’s to your client:
need to ensure that they keep a consistent level
Provide insightful market reports or thoughts
of output for their clients, with an emphasis on
1-2-1 tuition and guidance
customer service. This in turn will help maintain Provide actionable trading analysis
good, effective, professional relationships with Offer a weekly catch up on Zoom, Skype, etc.
the client and help you build a far more efficient Deliver high quality and valuable education
and sustainable business model".

IB GUIDE | HOW TO RETAIN CLIENTS WWW.POMELOFX.COM

 9. Creating an IB business plan
In order to become a successful IB, you will need to think and create a business plan. Creating a well-thought-out business
plan will help ensure you deliver to your client’s expectations whilst having a clear roadmap for your own success. A business
plan isn’t set in stone and should be flexible and you as an IB need to possess the ability to adapt as time goes on. Each client
will come with their own demands. Some may have no requirement for assistance whilst others want you to put your arm on
their shoulder and guide them every step of the way. Whatever the scenario is, be proactive in your approach and deliver
above and beyond.
JANUARY 2021

Your plan should include the following:

1. Marketing Plan
2. Converting prospects into active clients
3. Personal Goal Setting
4. Client Offering
5. Growth and Scalability
6. Client Retention

IB GUIDE | CREATING AN IB BUSINESS PLAN WWW.POMELOFX.COM

 9. Creating an IB business plan (Cont.)
The success of any IB stems from their marketing plan, which should be detailed and executed with precision and consistency. We
suggest that whatever platforms or strategies you implement, do not bite off more than you can chew. Start off with one or two at
most so that you can commit all your time and energy towards your marketing efforts and master each strategy. We often find that
IB’s tend to try multiple strategies, failing to utilize any of them effectively or efficiently.

“ABC. Always be closing”. Have a clear, defined plan on how you will then convert your leads into active, trading clients. If the
foundations have been laid correctly, your funnel should take care of itself, and you should then be able to focus on making minor
JANUARY 2021

tweaks to test variables to try and boost your conversion rate.

Setting yourself personal goals helps you achieve success. Our successful IB’s create personal growth plans that are broken down by
day, week, month, quarter, and yearly. This helps ensure that the IB can clearly visualize their success (and failures) to see if they are
either meeting their personal goals or whether they need to make changes to achieve their target. Keeping activity high and
consistent is the best recipe for success. This will also enable you to effectively measure your ability to grow and scale your business
whilst also ensuring that you can manage your client base effectively.

What you offer your clients additionally will make the difference between a client trading for the short or long-term. Of course, as an
IB, your number one goal should be to bring on clients who trade for the long-term and also deposit more funds into their account.
Providing your clients with additional resources, analysis, and support, will help them to become better trades, thus generating
more consistent commissions for you as the IB.

IB GUIDE | CREATING AN IB BUSINESS PLAN WWW.POMELOFX.COM

 Open Account
10. The
Demo Account

Growth &
Opportunities
in Technology
Forex trading, especially for retail clients, has grown at an exponential rate and continues to do
so, and whilst many traders still rely on either manual trades or signals, many are turning to the
benefits of automated trading solutions.
JANUARY 2021

Essentially, a client can connect their trading account directly to a pre-programmed system that
trades on behalf of the client. The attraction to an IB is that they can also essentially automate
their income on the client's account, whilst the client can be provided with probable signals
completely automated. Of course, much is heavily reliant on the success of the software,
however trading algorithms aren’t new to the market and large financial institutions have been
trading this way successfully for many years.

As an IB, you can provide a portfolio of options for your client to suit their needs and
requirements. Some may enjoy receiving daily analysis and signals whilst others simply don’t have
the desire or time to trade and just want to automate their trading account. By offering such
services and solutions, you can begin to cater to an even wider pool of trades/investors, thus
increasing your opportunities for even more clients to join.

IB GUIDE | THE GROWTH & OPPORTUNITIES IN TECHNLOGY WWW.POMELOFX.COM

 Do Don't
Provide relative and valuable information for your Mislead make promises that are not realistic or
clients achievable. Building trust and affinity with your
Look after your pipeline and your pipeline will look after clients is the most important thing
JANUARY 2021

you Be pushy or aggressive. Know and understand what

Establish trust and authority with your clients your client's needs and wants are, rather than trying
Challenge yourself to be over assertive
Adhere to your business plan Talk negatively about other brokers, service providers,
Work closely with Pomelo FX so we can help you IB’s or competition
succeed Overpromise and under deliver
Become a master at closing deals Do anything that can tarnish both the reputation of
Have a clearly defined service offering, catering directly the broker or yourself as the IB
to your target audience
Have fun and enjoy your IB journey!

IB GUIDE | TIPS FOR SUCCESS WWW.POMELOFX.COM

 12. Look after your clients and your clients will look after you
Being someone that your clients can rely on and depend on will make the world of difference.
Not only from a financial point of view but your experience as an IB as well. Being an IB can
give you a huge amount of personal satisfaction and also be a very fun, enjoyable, and
profitable journey!

Education (online Sharing analysis, Automated trading Being active,

Webinars &
and offline) strategies, market solutions responsive, and
Seminars
insights and signals informative

IB GUIDE | LOOK AFTER YOUR CLIENTS AND YOUR CLIENTS WILL LOOK AFTER YOU WWW.POMELOFX.COM
 Open Account Demo Account
13. Benefits of working with Pomelo FX
Here at Pomelo FX, we understand that in order for you to succeed as an IB, you need
to have all the necessary tools, resources, and support in place. At PFX, we provide a
whole toolbox for growth to help you drive your business forward and provide your
clients with everything they need to succeed and be confident in joining our brokerage.
Here are some of the main benefits of working with PFX:

Quality of Execution
Trading Simplified
Large portfolio of financial trading instruments
Innovative trading platforms & apps
Training & Educational Opportunities
Licensed & Reputable brokerage
Marketing & promotional support
Performance monitoring, reporting tools, and tracking software
Customized commissions plan
Dedicated, experienced customer service team to support you and your business
"Be sure to have a retention plan in place. IB’s
need to ensure that they keep a consistent level By ensuring that you only work with a reputable broker such as us, you’re a lot more
of output for their clients, with an emphasis on likely to succeed when attempting to convert interested parties into active clients. It’ll
customer service. This in turn will help maintain also help you retain those active clients once they are trading. Using a broker with a
good, effective, professional relationships with solid reputation, transparent regulatory standing, and good reviews will encourage
the client and help you build a far more efficient traders to use your services and help make running your business far smoother.
and sustainable business model".

IB GUIDE | BENEFITS OF WORKING WITH PFX WWW.POMELOFX.COM

 Open Account Demo Account

14. A bit about Pomelo FX

Pomelo FX is leading CFD’s and multi-asset online trading brokerage,

connecting thousands of traders, investors, and partners around the world to
more than 75+ instruments – across all asset classes – from a single account.

Our Mission is To Provide the Best Customer Service to our Clients by

maintaining a Superb Client-Centric Culture. In this way, we will achieve our
vision of maintaining our position as a Market Leader known for our Superior
JANUARY 2021

Customer Services

Core Value
Our values are the way we consistently achieve our mission
Integrity and Trust
Honesty and Fairness
Transparency
Commitments and Responsibility
Reliability
Flexibility
Constant Innovation
Strong Corporate Governance

IB GUIDE | A BT ABOUT POMELO FX WWW.POMELOFX.COM

 Step 1:
Complete application form online

We hope that by now you will have been

given enough information to decide on
Step 2:
becoming an IB and working alongside
JANUARY 2021

Pomelo FX. Below are the simple steps you Verify your profile and await approval from your IB partnership team
need to complete in order to join our IB
programme

If you have any further questions before

starting, please feel free to reach out to our Step 3:
IB Partner specialist team who will be happy Confirm commission agreement with Pomelo FX
to assist you further: [email protected]

Become an IB

Step 4:
Introduce and grow your IB business

IB GUIDE | BECOMING A PFX IB PARTNER WWW.POMELOFX.COM

 Open Account Demo Account
JANUARY 2021

IB GUIDE | EDUCATIONAL SERVICES & SOLUTIONS WWW.POMELOFX.COM

 Open Account Demo Account

17. Trading Conditions

We have market-leading trading conditions, delivering
superior results, and performance for your clients:

Tight All Strategies Pioneering No fees on Secure

Spreads Allowed technology deposit and trading
withdrawals

And ultra-Fast Execution Including EA’s, Hedging, Pomelo FX is powered Enjoy a fee-free deposit Clients funds are safe,
- 0.20s on average and and Scalping by innovative and withdrawal system secure, and held in
no requotes. technology and at Pomelo FX. segregated accounts
advanced features to
cater to our clients’
evolving needs.

IB GUIDE | TRADING CONDITIONS WWW.POMELOFX.COM

 Open Account Demo Account

17. Trading Conditions (Cont).

Advanced Extensive Execution Licensed and IB Partnerships

technology portfolio control regulated

For liquidity, price feed, Create a diverse Enter and exit trades in Pomelo FX is Introduce clients to us
aggregation, and more. portfolio, increasing a flash with our cutting- incorporated under the and be rewarded for
your potential trading edge technology laws of Vanuatu with every trade your
opportunities. registration number referees make. A
700234, regulated by powerful way to earn
the VFSC (Vanuatu extra income.
Financial Services
Commission).

IB GUIDE | TRADING CONDITIONS WWW.POMELOFX.COM

 Live Account (Key Features) Demo Account (Key Features)
Superior Trading Conditions Learn how to Forex trade risk-free
We take pride in providing one of the industry’s fastest execution For those who aren’t quite ready to trade live yet, you can open
times – 0.20s on average and no requotes. a demo account and practice your strategies, learning how the
market works, and perfecting your trading plan.
Fully Customisable Trading Platform
All our trading platforms are powered by innovative technology Familiarise yourself with your trading platform
JANUARY 2021

and advanced features to cater for our clients’ evolving needs. Trade on MT4 or MT5 and place trades without putting real
Take advantage of the unique options to suit your trading style money at risk. Learn how to place a trade, how to close a trade,
and requirements with MT4 or MT5, across multiple devices. and how to use different tools and trading indicators.

Diversify Your Portfolio Experience real, live market trading conditions

Get access to 75+ instruments with spreads as low as 0.5 pips and Opening a demo account gives you direct access to the world's
some of the lowest commissions on the market. Trade-in Forex, largest financial market as it happens, second by second.
Commodities, Energies, and Indices in real-time.

OPEN LIVE ACCOUNT

OPEN DEMO ACCOUNT

IB GUIDE | START TRADING WWW.POMELOFX.COM

 "The goal of a successful trader
is to make the best trades.
Money is secondary".

- Alexander Elder
JANUARY 2021

Open Account Demo Account

WWW.POMELOFX.COM
 Open Account Demo Account

19. Contact us

Email

[email protected]
JANUARY 2021

Live Chat hours

24 hours a day, 5 days a week

Pomelo Limited (“PomeloFX”) is authorized and regulated by the
Vanuatu Financial Services Commission (VFSC:700234).
Registered address: First Floor, I Count Building, Kumul Highway, Location
Port Vila, Vanuatu. Pomelo FX limited is registered in the UK
under the registration number 18541167. Pomelo Services MDCC PomeloFX LTD, 1st Floor, iCount Building,
is registered in DMCC, Dubai, UAE, under licence number
Kumul Highway, Vanuatu.
DMC187923. Pomelo Limited is registered in Cyprus under the
licence number: 412639
 Open Account Demo Account

Risk Warning

Contracts for Difference (‘CFDs’) are complex financial products and not suitable for all investors. CFDs, are leveraged products that mature when you
choose to close an existing open position. By investing in CFDs, you assume a high level of risk. Please ensure you understand the risks involved as you may
lose all your invested capital. Past performance of CFDs is not a reliable indicator of future results. The site contains links to websites controlled or offered
by third parties. Pomelo FX has not reviewed and hereby disclaims responsibility for any information or materials posted at any of the sites linked to this
site. By creating a link to a third-party website, Pomelo FX does not endorse or recommend any products or services offered on that website. The
information contained on this site is intended for information purposes only. Therefore, it should not be regarded as an offer or solicitation to any person
in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it would be unlawful to make such an offer or
solicitation, nor regarded as a recommendation to buy, sell or otherwise deal with any particular currency or precious metal trade. If you are not sure about
your local currency and spot metals trading regulations, then you should leave this site immediately.

Pomelo FX does not offer Contracts for Difference to residents of certain jurisdictions

IB GUIDE | RISK WARNING WWW.POMELOFX.COM