Carrying Broker
Definition of 'Carrying Broker'A commodities or securities broker who provides back office functions such as clearing, settlement and custodial services to other brokers. The carrying broker therefore enables other brokers, known as introducing brokers, to provide full service to their clients without incurring the huge start-up and maintenance costs of running a back office. Introducing broker/carrying broker relationships have existed in the United States since the mid-1970s. |
|
Investopedia explains 'Carrying Broker'The benefits of using a carrying broker include cost efficiencies, economies of scale and risk mitigation. It also allows the introducing broker to focus on its core competencies, such as portfolio management, client relationship management and marketing of products and services. Carrying brokers also provide additional services, such as maintaining records of client transactions and preparing and distributing client statements and confirmations. Some carrying brokers even provide financing for client margin accounts. |
Related Definitions
Articles Of Interest
-
Understanding Order Execution
Find out the various ways in which a broker can fill an order, which can affect costs. -
Uncovering The Securities Firm
Learn about the various departments of a securities firm and the professionals who make it work. -
4 Dishonest Broker Tactics And How To Avoid Them
Protecting yourself from unscrupulous practices means knowing how to spot them. -
Brokers and Online Trading
How do you find the right broker for your investment needs? Start by reading our broker tutorial. -
Futures Fundamentals
For those who are new to futures but want a solid understanding of them, this tutorial explains what futures contracts are, how they work and why investors use them. -
6 Asset Allocation Strategies That Work
Your portfolio's asset mix is a key factor in whether it's profitable. Find out how to get this delicate balance right. -
Should You Offer Alternative Investments?
Find out what problems arise for financial representatives when they start to diversify their client offerings. -
Nobel Winners Are Economic Prizes
Before you try to profit from their theories, you should learn about the creators themselves. -
How To Become An Investment Bank Analyst
Financial services firms are taking a laser-like focus on analyst responsibilities and will favor candidates who bring the following "must-have" attributes to the negotiation table. -
The Best Training Programs For CFP Exams
The competition to become a financial planner is hot, and growing hotter. Find out the best way to preparing to land the CFP designation.
Free Annual Reports