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 ?
63% were offered by binary option issuers and facilitated trading, 25% were from various signal providers and the rest were controlled by introducing brokers or were apps designed to influence people to trade binary options.
We service individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers.
AAATrade has partnered with industry leading trading support providers to open its doors and welcome affiliates and introducing brokers, the company said.
iFX EXPO Asia is one of the largest financial B2B expositions in Asia for brokers, service providers, introducing brokers and other trading and technology specialists.
Like National Bank's Correspondent Network, the TD Waterhouse Institutional Services business provides back-office services for independent Canadian- based registered portfolio managers and introducing brokers.
The regulations apply to banks and trust companies, savings associations, credit unions, securities brokers and dealers, mutual funds, futures commission merchants, and futures introducing brokers.
removing references to Australia on their website; ceasing marketing campaigns directed at Australian investors; adding appropriate disclaimers to websites and mobile apps; blocking sign-up access to Australian investors; educating introducing brokers and affiliates to cease targeting Australian investors; closing down existing Australian accounts; and informing Australian investors that the entity is not appropriately licensed in Australia.
The company now offers cross-border investment services in 249 countries including key target markets in the EU as well as developed countries in the Asia-Pacific region where it aims to build its presence through a network of Introducing Brokers.
is a US based company, who has been providing leading-edge trading technology solutions for a multitude of Financial Institutions including Banks, FCMs, Forex Brokers, Broker/Dealers, Introducing Brokers and Money Managers worldwide since 2000.
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.