Prime Brokerage Accounts

A prime brokerage account allows the customer to utilize several broker dealers to execute their orders, while designating a central or main firm to maintain custody of their assets. The firm that carries and receives the customer’s cash and securities is known as the “prime broker”. Prime brokerage accounts are usually established by institutional investors and larger retail investors. In order to open a prime brokerage account the client must have at least $500,000 in equity. If the account is managed by a registered investment adviser, the minimum account equity is $100,000. A prime brokerage account will allow the client to receive execution and research reports from a variety of broker dealers known as executing brokers. The executing broker will buy and sell securities for the customer and the customer will report the trade to their prime broker. The trade will then be entered into the customer’s account at the prime broker. The executing broker will confirm the trade through the DTC institutional ID system and the prime broker will affirm the trade. 

ACCOUNT TRANSFERS

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