Anyone Can Be a Forex IB—And That’s the Problem
- forex368
- Jun 5
- 3 min read
The dark side of an unregulated affiliate game—and why real pros read the fine print.
In the world of forex and CFD trading, introducing brokers (IBs) and affiliates are the fuel behind the fire. They bring in the clients, drive the volumes, and power the revenue machines for brokers across the globe.
And yet—almost anyone can become one.
No training. No licence. No oversight. Just an agreement, a few banners, and you’re in.
Sounds like a dream. But that low barrier to entry? It’s a trap in disguise.
The Regulation Void: Why IBs Slip Through the Cracks
Forex brokers are regulated—at least the serious ones. They answer to the FCA, ASIC, CySEC, or similar. They have to follow AML rules, risk disclosures, KYC checks, leverage caps.
But their affiliates?
Most jurisdictions don’t regulate IBs at all. There’s no affiliate licence, no audit trail, no enforced compliance standards. The broker might tell you to be “compliant,” but there’s rarely any formal accountability.
And that means:
Anyone can claim to be an IB—even with zero understanding of the industry.
Shady operators flood the space, often promoting high-risk, offshore brands with false promises.
Legit marketers get lumped into the same category, making it harder to build trust or scale up.
This isn't just an ethical issue. It's a structural risk.
Why Brokers Like It That Way
Let’s not pretend this is accidental. The current setup benefits brokers in two big ways:
1. They expand fast with zero liability.
They outsource customer acquisition to third parties, who do the heavy lifting. No salaries. No taxes. No regulatory exposure—at least on the surface.
2. They keep control.
If an IB steps out of line or starts costing more than they bring in, the broker can kill the deal. Cut commissions. Close accounts. And there’s rarely any legal comeback, because the contract is designed that way.
What Regulation Would Actually Mean
So should IBs and affiliates be regulated? A lot of people say yes. Here’s what that could look like in practice:
A basic licensing requirement for anyone earning performance-based income from trading referrals.
A public registry of affiliates and IBs, tied to the broker they're promoting.
Clear compliance standards for advertising, disclosure, and client handling.
Broker accountability for the actions of their marketing partners.
Possibly, an industry-wide code of conduct—enforced by regulators, not just broker legal teams.
Would this kill off a chunk of affiliate revenue? Maybe. But it would also:
Weed out the amateurs and fake gurus.
Make it easier for serious IBs to build long-term businesses.
Reduce chargebacks, client complaints, and affiliate-broker fallout.
Why This Matters If You're In the Game for Real
If you're a legit IB or affiliate—someone who knows how to build funnels, drive quality leads, and play the long game—this wild west landscape does nothing to protect you.
Right now:
You can lose your income overnight for “violating” vague broker terms.
You can be grouped in with scammers because there’s no formal standard separating you.
You can face regulatory heat even if you thought you were doing everything right—especially in grey zones like LATAM, Africa, Southeast Asia.
And worst of all: your broker will not take the fall for you.
The Bottom Line
The fact that anyone can become a Forex IB is exactly why the model is so unstable.
If you're in it for a quick CPA grab, fine. Roll the dice, take the payouts, and move on before the floor collapses.
But if you're building an actual income stream—one that compounds over years, not weeks—you need to:
Understand the regulatory risks, even in “offshore” deals.
Read every contract like it’s a trap—because sometimes it is.
Operate as if you're already regulated, even if you're not yet required to be.
Because sooner or later, you will be.
Interested in excelling as an IB? Contact me.
