LATAM Broker Growth Is Not Just About Direct Marketing but IBs and Trust

Wednesday, 19/08/2026 | 05:00 GMT by Sebastián Rivas
  • Sebastián Rivas, Co-Founder of LFXS, highlights how IBs can drive 40%-70% of new funded clients, with a CAC of $200-$450, making trusted partnerships key to growth.
  • With LTV reaching $2,000+, brokers need to focus less on chasing leads and more on building strong, long-term partnerships with local trading communities.
Trust over Marketing

Every international broker I speak with eventually asks the same question: How do we grow faster in Latin America? The conversation almost always starts with customer acquisition. Marketing budgets, digital campaigns, cost per acquisition, conversion funnels and new channels dominate the discussion. My answer, however, is usually different.

I don't believe most international brokers have an acquisition problem in LATAM. I believe they have a trust problem.

Trust Matters More Than Acquisition

After more than twenty years working with international financial institutions expanding across the region, I've seen outstanding products fail despite significant investment, while smaller firms with fewer resources built sustainable businesses.

The difference was rarely technology, pricing or marketing execution. It was whether they understood how financial decisions are actually made across Latin America.

Marketing creates awareness, but awareness should never be confused with credibility. Financial services are fundamentally different from most consumer industries. Clients are not simply buying a product; they are deciding where to place their capital. That decision carries a much higher level of perceived risk, particularly when the broker is an international brand with little local presence.

Across LATAM, traders often spend weeks researching a broker before opening an account. They compare platforms and products, but they also seek reassurance from educators, experienced traders, local communities and people they already trust.

Advertising may introduce a broker, but it rarely convinces someone to fund an account. Latin America remains one of the most relationship-driven financial markets in the world.

This is also why I believe the industry's view of Introducing Brokers has fundamentally changed.

Ib Model

The Changing Role of IBs

For years, IBs were seen primarily as referral partners motivated by commissions. That description no longer reflects reality. The strongest IBs have evolved into entrepreneurs.

They build educational businesses, manage trading communities, organise events, create content, invest in CRM platforms and marketing automation, and maintain long-term relationships with thousands of traders. Many have developed personal brands with greater influence inside their communities than corporate advertising could ever achieve.

Their greatest asset is no longer access to clients—it's trust. Today's IB networks extend far beyond traditional Introducing Brokers. They include trading academies, money managers, trading communities, educators, content creators, influencers and local opinion leaders who have already earned the confidence of their audiences.

Moving Beyond the Commission Model

That evolution has changed how brokers should approach partnerships. Competition used to revolve almost entirely around commercial terms, with the assumption that the highest rebate would attract the best partners. While commissions will always matter, the industry has quietly moved beyond a commission-only model.

The economics reinforce this shift. Based on industry benchmarks, public research and LATAM Forex Solutions (LFXS) market observations, acquiring a funded trader in Latin America typically costs between US$200 and US$450 (CAC), depending on the country, acquisition channel and commercial model.

Well-performing brokers generally target an LTV between US$900 and US$2,000+, maintaining an LTV ratio of at least 3:1, a widely recognised benchmark for sustainable and profitable growth.

As digital acquisition becomes increasingly competitive, mature brokers are estimated to generate 40% to 70% of new funded clients through partner ecosystems, including Introducing Brokers, trading academies, money managers, trading communities, educators, affiliates and content creators.

These economics explain why the objective is no longer simply reducing CAC, but maximising long-term client value through stronger retention, higher client quality and trusted partnerships.

Professional IBs increasingly evaluate brokers as long-term business partners rather than commission providers. They expect responsive account management, operational support, technology, co-marketing initiatives, educational resources and direct access to decision-makers. Above all, they want confidence that the broker is genuinely invested in helping them grow a sustainable business.

Building Long-Term IB Relationships

One of the biggest lessons I've learned is that successful IB partnerships increasingly resemble loyalty programmes rather than traditional affiliate relationships. Retaining quality partners isn't about paying a slightly higher rebate. It's about continuous support, transparency, collaboration and creating value long after the first client has been introduced.

This shift has also changed how we engage with IBs across Latin America. Like many firms, we initially believed attending every major expo and organising large networking events was the best way to build partnerships. Those events create visibility, but they rarely provide enough time to truly understand an IB's business.

Today, we place far greater value on smaller, highly targeted meetings and micro-events. Sitting down with a handful of carefully selected partners often generates far more meaningful conversations than speaking with hundreds of people during a busy exhibition.

These discussions reveal how an IB acquires clients, the operational challenges they face, the technology they need and, most importantly, where they want to take their business over the next several years.

Measuring Relationship Quality

Those conversations have reshaped my perspective on what sustainable growth really looks like.

For years, the brokerage industry measured success by the number of IBs recruited. I increasingly believe a better metric is the quality of the relationships built with them. As customer acquisition costs continue to rise and digital channels become more competitive, buying attention becomes easier than earning trust.

Brokers can always increase advertising budgets, but building genuine relationships with the entrepreneurs who already have the confidence of local trading communities is far more difficult—and far more valuable.

Technology will continue to evolve. AI will reshape workflows. Marketing channels will change, and new acquisition strategies will emerge. Trust, however, remains remarkably constant.

In Latin America, sustainable growth is still built on relationships, credibility and local knowledge. IB networks are no longer simply another acquisition channel—they have become the commercial infrastructure connecting international brokers with trading academies, money managers, trading communities, educators, content creators, local communities and long-term client relationships.

The firms that recognise this shift won't simply recruit more IBs. They'll build stronger, more resilient businesses across Latin America.

Every international broker I speak with eventually asks the same question: How do we grow faster in Latin America? The conversation almost always starts with customer acquisition. Marketing budgets, digital campaigns, cost per acquisition, conversion funnels and new channels dominate the discussion. My answer, however, is usually different.

I don't believe most international brokers have an acquisition problem in LATAM. I believe they have a trust problem.

Trust Matters More Than Acquisition

After more than twenty years working with international financial institutions expanding across the region, I've seen outstanding products fail despite significant investment, while smaller firms with fewer resources built sustainable businesses.

The difference was rarely technology, pricing or marketing execution. It was whether they understood how financial decisions are actually made across Latin America.

Marketing creates awareness, but awareness should never be confused with credibility. Financial services are fundamentally different from most consumer industries. Clients are not simply buying a product; they are deciding where to place their capital. That decision carries a much higher level of perceived risk, particularly when the broker is an international brand with little local presence.

Across LATAM, traders often spend weeks researching a broker before opening an account. They compare platforms and products, but they also seek reassurance from educators, experienced traders, local communities and people they already trust.

Advertising may introduce a broker, but it rarely convinces someone to fund an account. Latin America remains one of the most relationship-driven financial markets in the world.

This is also why I believe the industry's view of Introducing Brokers has fundamentally changed.

Ib Model

The Changing Role of IBs

For years, IBs were seen primarily as referral partners motivated by commissions. That description no longer reflects reality. The strongest IBs have evolved into entrepreneurs.

They build educational businesses, manage trading communities, organise events, create content, invest in CRM platforms and marketing automation, and maintain long-term relationships with thousands of traders. Many have developed personal brands with greater influence inside their communities than corporate advertising could ever achieve.

Their greatest asset is no longer access to clients—it's trust. Today's IB networks extend far beyond traditional Introducing Brokers. They include trading academies, money managers, trading communities, educators, content creators, influencers and local opinion leaders who have already earned the confidence of their audiences.

Moving Beyond the Commission Model

That evolution has changed how brokers should approach partnerships. Competition used to revolve almost entirely around commercial terms, with the assumption that the highest rebate would attract the best partners. While commissions will always matter, the industry has quietly moved beyond a commission-only model.

The economics reinforce this shift. Based on industry benchmarks, public research and LATAM Forex Solutions (LFXS) market observations, acquiring a funded trader in Latin America typically costs between US$200 and US$450 (CAC), depending on the country, acquisition channel and commercial model.

Well-performing brokers generally target an LTV between US$900 and US$2,000+, maintaining an LTV ratio of at least 3:1, a widely recognised benchmark for sustainable and profitable growth.

As digital acquisition becomes increasingly competitive, mature brokers are estimated to generate 40% to 70% of new funded clients through partner ecosystems, including Introducing Brokers, trading academies, money managers, trading communities, educators, affiliates and content creators.

These economics explain why the objective is no longer simply reducing CAC, but maximising long-term client value through stronger retention, higher client quality and trusted partnerships.

Professional IBs increasingly evaluate brokers as long-term business partners rather than commission providers. They expect responsive account management, operational support, technology, co-marketing initiatives, educational resources and direct access to decision-makers. Above all, they want confidence that the broker is genuinely invested in helping them grow a sustainable business.

Building Long-Term IB Relationships

One of the biggest lessons I've learned is that successful IB partnerships increasingly resemble loyalty programmes rather than traditional affiliate relationships. Retaining quality partners isn't about paying a slightly higher rebate. It's about continuous support, transparency, collaboration and creating value long after the first client has been introduced.

This shift has also changed how we engage with IBs across Latin America. Like many firms, we initially believed attending every major expo and organising large networking events was the best way to build partnerships. Those events create visibility, but they rarely provide enough time to truly understand an IB's business.

Today, we place far greater value on smaller, highly targeted meetings and micro-events. Sitting down with a handful of carefully selected partners often generates far more meaningful conversations than speaking with hundreds of people during a busy exhibition.

These discussions reveal how an IB acquires clients, the operational challenges they face, the technology they need and, most importantly, where they want to take their business over the next several years.

Measuring Relationship Quality

Those conversations have reshaped my perspective on what sustainable growth really looks like.

For years, the brokerage industry measured success by the number of IBs recruited. I increasingly believe a better metric is the quality of the relationships built with them. As customer acquisition costs continue to rise and digital channels become more competitive, buying attention becomes easier than earning trust.

Brokers can always increase advertising budgets, but building genuine relationships with the entrepreneurs who already have the confidence of local trading communities is far more difficult—and far more valuable.

Technology will continue to evolve. AI will reshape workflows. Marketing channels will change, and new acquisition strategies will emerge. Trust, however, remains remarkably constant.

In Latin America, sustainable growth is still built on relationships, credibility and local knowledge. IB networks are no longer simply another acquisition channel—they have become the commercial infrastructure connecting international brokers with trading academies, money managers, trading communities, educators, content creators, local communities and long-term client relationships.

The firms that recognise this shift won't simply recruit more IBs. They'll build stronger, more resilient businesses across Latin America.

About the Author: Sebastián Rivas
Sebastián Rivas
  • 1 Article
About the Author: Sebastián Rivas
Sebastian Rivas is a business builder, entrepreneur, and business leader with more than 25 years of experience across banking, investments, and the FX & CFD industry. His career includes over eight years in banking, including Citibank, and more than 18 years helping international brokers, fintechs, payment providers, and financial institutions establish, expand, and scale across Latin America. As Co-Founder & Managing Partner of LATAM Forex Solutions (LFXS), a VA Group company, he specializes in market entry strategy, business development, strategic partnerships, and building the commercial and operational infrastructure required for long-term regional growth.
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