What do you think about referral?

I have been trading forex for almost a very long time now, recently I started inviting new traders to the broker that I work and I am earning money for that! based on each trade that they make. The question in my mind is now, why do people trade when they can have such guaranteed and effortless income?! is there any reason for that?

If nobody traded, then who are the referrers making the referral money from?

There’s more money in trading than advertising. If you can do it at least

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That’s a curious question.

How many people could you possibly refer to that broker that will out perform your trading profits?

All of those traders will have to be professional/profitable traders. That’s a very hard sell, convincing traders to switch brokers.

BTW, what broker pays fees based on other people’s trades? For you to make such an easy living from a percentage of these other traders, their accounts would have to be quite large. At least $100,000.

@Phonix you’ve been around about 7 months, so I’m even reluctant to say this. But to be honest, this thread seems like bait for us to ask you who the broker is.

Sorry if I’m wrong. But after reading the question a few times, it really seems like a bad question. There are so many flaws in that logic. I don’t think you really thought it through.

1- Why are those profits guaranteed?
2- Why do you think making a living from convincing other traders to switch brokers is effortless?
3- How low were your profits that your referral rewards surpassed them?
4- If you were receiving a percentage from their profits, how large are their accounts?
5- Why would you ask beginner traders a rhetorical question about why don’t they refer profitable traders to other brokers for a living instead of trading?
6- How many profitable traders trading $100k accounts do you think beginner traders know?

  1. And what makes you think 9 outta 10 of these traders will still be trading in the years to come and not quite?
  2. If they don’t quit, what makes you think these traders wont change brokers as time comes.
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That actually is the point. I am not saying that this is more profitable, but I know that it is less risky.

I am not saying that it can out perform trading, I just said that it is very easy and risk free.

Why would you say so? Is your rebate depending on your trader’s trades?

you are totally right to think that way, yet you can out play me just by avoiding asking that LOL. I am not advertising any broker :smiley: and for your questions, I will reply in another comment.

You will get your rebate regardless of the out come of the trade, there is no chance for losing, it is guaranteed

It is way more less effort than learning to trade, learning risk and capital management and to manage your emotions.

I never said that it did! yet, lets talk about an average trader (90% of traders lose money) and an average IB (they can not lose money as an IB, even if they wat to :D). I am not an average trader and I do accept that I earn more via trading than referring, but this is not true about all traders

I do not receive any of their profit, I receive fix rebate for each lot of trade they make (as of now I get 10$ per every traded lot, regardless of the out come of the trade or the size of the account)

I truly did not get this question, I read it multiple times, if you mean why do i suggest new traders to become an IB and not an experienced trader; the reason is simple, experienced trader wins money via trading, a new bee loses money, being an IB is a better option for new traders to win.

why do you think they should have 100k? :smiley: you think if the trader has like $100, or even less, $10 they are not worthy of being under your IB branch?

Because only professional/profitable traders make money in trading. How can you earn a commission from an unprofitable trader?

If their account is so small, then your percent of their profit is even smaller–a mere fraction.

If their account is $100, they’re trading mini lots and profiting a few dollars at a time. If that’s the case, and my commission is approximately 2%, then my share is a mere $0.02-0.03. In that case, why would I abandon trading for this?

If I were you, I would stop defending this position. Your argument is not as strong as you think it is. The more you argue for it, the more flawed it becomes.

Being an IB, has nothing to do with your clients profitability. Even if they lose, you get your commission.

Then you failed to explain the commission comes from spreads. This conversation is exhausting, bro. haha

If this is how you convince traders to join your broker, I hope you aren’t expecting to feed your children with this money. I wish you the best.

I wish you logic and brain man LOL I explicitly said that I am not going to name any broker, yet you are insisting on your stupidity, that is really funny. and where do you expect the commission to come from? :smiley: you really like to refer clients to a broker and eat up from their profit? why would they like to feed your family with their money? :smiley: go get a job and stop dreaming boy

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Good point. Also, based on what I know they give you money but they have so many conditions.

And do you have a good client base? and are they profitable?

Like what conditions? Trading has to be done based on rules and conditions too.

TBH, i am not sure if they are profitable or not, i have about 15 clients under me and that is almost a good income for no effort.

For example, they may state that your clients (those you introduced) must have an overall X-dollar deposit or something like that.

Oh, that makes it difficult to earn you are right. Fortunately, I did not face something like that yet.

Well, make sure that you are well aware of their conditions before you start.

oof sounds a bit like a pyramid scheme!