Introducing broker

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Introducing Broker

A person or business that provides investing advice or counsel to an investor, but does not actually handle transactions. Generally speaking, introducing brokers make recommendations while delegating the task of executing trades to someone at the same or a different firm who operates on a trading floor. The introducing broker and the person(s) who execute a transaction split the fees and commissions according to some agreed upon arrangement. The term most often applies to brokers in the futures market.

Introducing broker (IB).

An introducing broker is a broker-dealer that contracts with a clearing firm to handle the execution and settlement of orders that the introducing firm receives from its clients or its own trading desk to buy and sell securities.

The clearing firm, not the introducing broker, receives payments and securities from the clients and handles record-keeping. The introducing broker, who earns a commission on the transaction, typically pays a fee for each trade and interest on margin loans the clearing firms make to the clients it introduces.

In commodities markets, an introducing broker is an intermediary who takes orders for futures contracts but passes on responsibility for executing the orders and handling the financial arrangements to a futures commission merchant (FCM).

References in periodicals archive ?
Current management of Penson's futures division will remain in place and Penson will continue to service its introducing brokers and customers through a transition services agreement with Knight.
AAATrade affiliates network creates a unique experience for affiliates and introducing brokers (IBs), delivering industry leading support in combination with profitable commission structures and competitive trading conditions.
Offering a diverse range of products and services under three key trading brands, AFX Capital caters for retail forex and metals trading clients under its SuperTradingOnline brand, introducing brokers and institutional partners under AFX Affiliates, while portfolio management is provided by Quantic.
Aside from individual and institutional accounts, London Multi Commodities Exchange also offers trading accounts that are especially designed for financial advisors and introducing brokers.
In her new role, Pedersen will oversee wealth management operations strategy and managed service, which currently supports 24 clients including 150 introducing brokers.
8220;We were also able to introduce major new partnerships, Introducing Brokers, Omnibus partners and new risk management and liquidity partners to the bank.
Founder Jack Earnest established Velocity Futures in 2002 with the single-minded focus of providing superior technology that would deliver professional grade tools and prompt customer service to active high volume traders, funds and introducing brokers.
Charlie Carey, CMC Chairman of the Board and CME Group Vice Chairman, comments, "With regulatory reform requiring rule-making by the CFTC at a pace that the industry and the CFTC are struggling with, and the rules potentially having a significant impact on your business, this is a must-attend event for company leaders involved in trading commodities - commercials, FCMs, introducing brokers, swap dealers, commodity exchanges, prop trading firms, commodity pool operators, index and hedge funds.
has been providing leading-edge trading technology solutions for a multitude of FCMs, Forex Brokers, Broker/Dealers, Introducing Brokers, Money Managers and financial institutions worldwide since 2000.
Banks, broker-dealers, mutual funds, futures commission merchants and introducing brokers in commodities have for several years been permitted to share SARs with head offices and parent companies.
8220;In addition to our ongoing affiliation to some of the world's renowned Introducing Brokers, we also have robust relationships with various established firms that have chosen Laeken International's trading systems and technology under white label agreement,” Pacey added.
O'Brien and Associates is the largest independent futures brokerage firm in the United States, serving institutional, commercial and individual clients globally, in addition to a network of 400 introducing brokers.