How to Become an Introducing Broker (Futures and Forex)

An introducing broker (IB) brings clients to a broker and earns a share of the revenue, without holding client money itself. In the US futures market it is a registered role; in offshore forex it is usually a commercial partnership. Prop firm founders look at it because it lets them offer real brokerage accounts to traders who outgrow simulated evaluations. This guide covers both versions, with figures checked on 12 October 2026.

What does an introducing broker do?

The NFA defines an IB as "an individual or organization that solicits or accepts orders to buy or sell futures contracts" but does not accept the client's money; a futures commission merchant (FCM) holds the account and clears the trades. The IB introduces, services and sometimes advises the client, and is paid by the FCM.

How do you register as a futures IB in the US?

Through the NFA, which handles registration for the CFTC. The NFA's IB page sets out the steps: complete Form 7-R online, "pay a non-refundable application fee of $200", and pay membership dues. Its dues page lists USD 750 a year for an introducing broker and USD 2,500 for an introducing broker forex firm. Associated persons must pass the Series 3 (National Commodity Futures Examination), and anyone dealing in off-exchange retail forex must also pass the Series 34; the NFA notes that "one principal of a forex IB must be a forex AP".

Capital is the main fork. Under 17 CFR 1.17 an independent IB must maintain adjusted net capital of at least USD 45,000. An IB operating under a guarantee agreement with an FCM is exempt from that requirement, because the FCM takes responsibility for its obligations, which is why most small IBs start guaranteed.

How do introducing brokers make money?

From a share of what the broker earns on the clients they bring: a per-contract or per-lot rebate, a share of commissions, or a share of spread revenue. Offshore forex brokers publish IB programmes; Tickmill, for example, says IBs can earn "up to 55% of spread revenue on a Classic account and $2.5 per lot on a Raw" account. Listed brokers show the cost from the other side: CMC Markets reports its net operating income net of introducing partner commissions.

That income depends on clients trading real accounts, which is the main difference from a prop firm's evaluation fees. Our guide on how forex brokers make money shows the broker economics behind the rebate, and is a prop firm a broker explains why an evaluation firm is not one.

Why are prop firms becoming introducing brokers?

To keep traders who want real accounts and to sit inside the regulatory perimeter. TradeInformer reported on 28 January 2026 that Topstep launched Topstep Brokerage, an introducing broker cleared by Plus500. Finance Magnates reported in May 2026 that Tradeify launched an introducing brokerage unit, Slay Markets, and described US prop firms as "moving inside the CFTC perimeter". An IB arm does not change the evaluation business itself; it adds a regulated one next to it, with its own website section, disclosures and compliance.

For a new founder this is usually a later step. Start with the evaluation firm on the futures launch page, compare futures prop firm platforms and the Tradovate vendor profile, check whether prop firms are legal in the US, and follow developments in our regulation news tracker.

What about the UK and EU?

The equivalent roles are an appointed representative in the UK and a tied agent in the EU. The FCA says an appointed representative "carries on regulated activity under the responsibility of an authorised firm", and the principal must make sure it is fit and proper. Under MiFID II Article 29 an investment firm may appoint tied agents and "remains fully and unconditionally responsible" for them. Unregulated "IB" or affiliate arrangements that only refer clients are a matter for a lawyer, especially because UK and EU financial promotion rules apply; our prop firm affiliate program guide covers the evaluation-side equivalent. Our European forex licence guide covers the EU framework.

What does an IB website need?

Clear separation and disclosure. If the IB sits next to a prop firm, keep evaluation products and brokerage accounts on visibly different pages, state which entity offers each, name the clearing FCM or broker, carry the risk disclosures your regulator requires, and never imply that simulated evaluation results are brokerage performance. For futures sites, many firms carry a CFTC Rule 4.41 hypothetical-performance legend where results appear; ask your lawyer. Our disclaimer generator drafts the simulated-trading notice, and PipValley builds multi-entity sites from the $3,500 Signature tier.

Questions

Sources

1. NFA: Introducing broker (IB) registration
2. NFA: Membership dues and fees
3. 17 CFR 1.17: Minimum financial requirements for FCMs and introducing brokers (Cornell LII)
4. NFA: Proficiency requirements
5. Tickmill: Introducing broker programme
6. CMC Markets: Preliminary results for the year ended 31 March 2026 (4 Jun 2026)
7. TradeInformer: Topstep launches introducing broker through Plus500 partnership (28 Jan 2026)
8. Finance Magnates: US prop firms are now moving inside the CFTC perimeter (21 May 2026)
9. FCA: Responsibilities and how to oversee your appointed representatives (updated 26 Nov 2025)
10. MiFID II Article 29: Tied agents (legislation.gov.uk copy)