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In forex trading, partnerships play a significant role in building successful business deals. Among the most common and impactful partnerships are those formed between Introducing Brokers (IBs) and Market Makers. It is a fact that clarity around these roles is essential. It is not just for traders, but also for partners considering long-term collaboration. To choose the right model for their goals and risk tolerance, individuals and businesses need to understand the distinction between IBs and Market Makers.
Let’s explore what each role entails, how they interact with a broker, and what makes them different in the context of a forex partnership.
An Introducing Broker is an individual or business that refers clients to a broker in exchange for a commission. IBs act as intermediaries between the broker and the trader but do not handle client funds or execute trades themselves. Their main responsibility is to bring in new clients and maintain those relationships over time.
The stronger the performance of their referrals, the more the IB earns. This makes it a performance-driven relationship.
Key Characteristics of an IB:
IBs are ideal for traders, influencers, educators, or affiliate marketers who want to build a passive income stream by leveraging their network, without the need to run a full financial operation.
A Market Maker, in contrast, is typically a financial institution or a professional trader who provides liquidity to a broker by taking the other side of trades. In some models, a Market Maker acts as the counterparty to clients’ trades, quoting both bid and ask prices, and profiting from the spread or from opposing positions.
While the term “Market Maker” can also refer to the broker’s internal dealing desk model, a Market Maker can also be an entity providing pricing and liquidity services to brokers or even white-labeling their own branded solution.
It is important for brokers to operate with transparent execution models, and its partners can clearly understand whether they are working with a no-dealing-desk (NDD) structure or a model that involves liquidity provision.
A Market Maker Partner:
This type of partner is more suited to institutions or experienced entities capable of handling risk, infrastructure, and sometimes even their own client base.
Although both roles are crucial to the functioning of the forex market, there are significant differences in structure, risk, and rewards. Knowing these differences is key when deciding which path aligns best with your strategy.
An IB earns money through commissions tied to the volume or activity of their referred clients. It’s a volume-driven model where the IB's income depends on maintaining active and loyal traders.
A Market Maker earns from spreads, swap rates, or sometimes the client’s losses. It depends on how the broker structures its trading environment. This model offers higher potential returns but carries a higher risk.
IBs carry no trading or market risk. Their role ends with referral and client support. The broker handles all client funds, execution, and regulatory obligations.
Market Makers, on the other hand, may take part in the other side of the trades. This exposes them to risk if clients are profitable or market volatility increases. While there are advanced risk management tools, this role still requires active oversight.
Becoming an IB is a straightforward process. Most brokers allow IBs to register quickly and begin referring clients right away. They typically provide ready-to-use marketing tools and dedicated partner support to help them grow their business effectively.
Yet, becoming a Market Maker involves a higher operational burden. It may require:
This makes it suitable only for advanced entities with technical and financial capacity.
IBs often maintain a close relationship with their referred clients. They offer localized services and ongoing communication. Their success depends heavily on client satisfaction and long-term retention.
Market Makers are generally more distanced from clients, with their role centered on liquidity, pricing, and execution. If the Market Maker is operating its own client-facing brand, it will also need to handle customer service and regulatory compliance.
At ZitaPlus, we believe the IB model is one of the most accessible and rewarding paths for those looking to grow a revenue-generating business in the forex market without taking on unnecessary risk.
As an IB partner, you’ll benefit from:
ZitaPlus empowers you to grow your network, monetize your community, and build a scalable business, while we take care of trade execution, security, and compliance.
The Market Maker model is best for well-capitalized and technologically advanced businesses. This can include liquidity providers, hedge funds, or institutional-level partners who want deeper involvement in the trading process.
If you're a trader or partner considering this route, keep in mind that you must be able to manage risk and maintain infrastructure. Also, licensing requirements can play a huge role in this depending on your region.
ZitaPlus can support tailored partnerships for qualified institutions.
Both the IB and Market Maker roles play vital roles in the forex ecosystem, but they cater to entirely different partner profiles. An IB focuses on growth through referral and client engagement, while a Market Maker engages directly with market exposure and liquidity provision.
At ZitaPlus, we support a variety of partnership models, but for most individuals, educators, content creators, and local business developers, the IB model offers the ideal mix of flexibility, scalability, and stability. If you’re ready to grow your reach without the burden of operational risk, the ZitaPlus IB program is designed to help you succeed.
Can someone be both an IB and a Market Maker at the same time?
In most cases, no. These are fundamentally different roles. An Introducing Broker focuses on client referrals and earns a commission based on client activity, while a Market Maker takes on pricing and liquidity responsibilities, often assuming market risk. Operating as both could create conflicts of interest and typically requires different licensing and infrastructure.
Do Market Makers manipulate prices against clients?
This is a common myth. Reputable and regulated Market Makers follow strict compliance rules and cannot manipulate prices. While they do provide pricing and liquidity, they use algorithms and market data to quote fair prices. Any unethical behavior is subject to regulatory penalties and business risk.
Is it easier to start as an IB than as a Market Maker?
Yes, becoming an IB is significantly easier. It requires minimal upfront investment and no regulatory licensing in most cases, as the broker handles all client funds and compliance. Market Makers, on the other hand, need strong financial resources, infrastructure, and in many jurisdictions, licenses.
What kind of traders should an IB target to maximize earnings?
IBs benefit the most from active, long-term traders who trade frequently. This includes day traders, scalpers, or swing traders. Educational communities, social media channels, and trading groups are often effective ways to attract and retain such clients.
Can a Market Maker lose money if clients are profitable?
Yes. If the Market Maker is taking the other side of client trades and the clients consistently win, the Market Maker can face losses. That’s why risk management tools, hedging systems, and proper analysis are essential components of a Market Maker’s strategy.
Would like to learn how to look financial markets from a different angle? Then keep reading and invest yourself with ZitaPlus.
