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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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).

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
broker-dealers, and that A (an introducing broker) holds an account at B
Allows the PCAOB to differentiate among BD classes and exempt introducing brokers (for example, nonclearing, carrying, custodial) when establishing such inspection programs.
Newton, MA, December 01, 2017 --(PR.com)-- Part of a brokerage's business is driven by a introducing brokers (IB) who have a direct relationship with traders (clients).
The Treasury Department's Financial Crimes Enforcement Network (FinCEN), recently issued proposed rules under the Bank Secrecy Act to clarify and strengthen customer due diligence requirements -- including anti-money laundering rules -- for banks, brokers or dealers in securities, mutual funds, and futures commission merchants as well as introducing brokers in commodities.
O'Brien & Associates serves institutional, commercial and individual clients globally, in addition to a network of 400 introducing brokers (IBs).
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.
North Capital Investment Technology ("NCIT") has announced it has launched a new custody solution for funding platforms and introducing brokers, the company said.
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.
iFX EXPO Asia is one of the largest financial B2B expositions in Asia for service providers, brokers, introducing brokers and other trading and technology specialists.