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 ?
To become a forex affiliate and earn commissions on trading, learn more about the forex introducing broker program http://www.
The importance of introducing brokers in the forex industry is clear, and works in a similar way to many online businesses where affiliates can provide a source of high quality traffic and high conversions.
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.
The National Introducing Brokers Association (NIBA) - established in 1991- is one of the foremost, nationally recognized organizations representing professionals in the futures and options industry.
com)-- Forex-Metal, a leading online Forex and CFD market maker, is happy to introduce pre-designed website templates that would allow Introducing Brokers to create their own forex websites in a matter of minutes.
The North American Derivatives Exchange (Nadex) - the first and only fully regulated retail-focused futures exchange in the United States - announced that it will be one of the co-sponsors of the upcoming NIBA (National Introducing Brokers Association) Sales and Marketing Conference to be held September 12, 2011 at the UBS Tower in downtown Chicago.
The rules also require CFTC registration of introducing brokers (IBs) and trading advisors, who need to maintain a minimum net capital requirement or enter into a guarantee agreement with a Forex broker.
ActForex, Inc has been providing leading-edge trading technology solutions for a multitude of FCMs, Forex Brokers, Broker/Dealers, Introducing Brokers and Money Managers worldwide since 2000.
Clearing more than 80,000 client accounts, RJO services a global network of more than 300 introducing brokers and many of the world's largest financial, industrial and agricultural institutions.
Feltes, widely acclaimed by introducing brokers (IBs), institutions and commercial agricultural market participants for his comprehensive analysis of, and commentary on, grain and oilseed markets, will focus on research tailored to meet the needs of the firm's clients.
com include the company's retail brokers, branch teams, Introducing Brokers and Guaranteed Introducing Brokers (IBs and GIBs), customer service managers, and colleagues from education firms that PFGBEST.
Joseph Murphy, RJO Executive Vice President and President of the Americas, said: "With futures as our core business, we have established a terrific niche in serving the growing middle market base of clients, including Fortune 1000 companies, small to mid-size corporate, industrial and agricultural firms, introducing brokers, high net worth individuals and commodity trading advisors.