Introducing Broker - IB

What is an 'Introducing Broker - IB'

An introducing broker (IB) is a futures broker who has a direct relationship with a client, but delegates the work of the floor operation and trade execution to another futures merchant. The merchant firm is usually a close partner of the IB.

BREAKING DOWN 'Introducing Broker - IB'

This is done to increase efficiency and lower the work load for futures brokers. It allows the IB to focus on the client while the futures merchant focuses on trading floor operations.

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RELATED FAQS
  1. What is the difference between investment banks and merchant banks?

    Merchant banks and investment banks, in their purest forms, are different kinds of financial institutions that perform different ... Read Answer >>
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    Discover how an insurance broker makes money. Insurance brokers are important in helping people find the right insurance ... Read Answer >>
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    In order to buy stocks, you need the assistance of a stock broker since you cannot just phone up a company and ask to buy ... Read Answer >>
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    There are certain times when a broker must purchase the stock that you are selling. For example, if the broker is a market ... Read Answer >>
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    If you decide that you have the knowledge and experience to take on stock investing, or if you feel you would like to give ... Read Answer >>
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    According to the Securities and Exchange Commission (SEC), there are three main reasons why a broker will ask for personal ... Read Answer >>
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