Introducing Broker
An introducing broker (IB) is a type of broker or financial intermediary that works with an established broker-dealer to provide services to clients. The IB is responsible for introducing clients to the broker-dealer, and for providing ongoing customer service and support. The IB may also provide research and analysis, as well as other services such as portfolio management and trading advice. The IB is typically compensated through a commission or fee structure.
History of Introducing Brokers
The concept of introducing brokers has been around since the early days of the stock market. In the past, brokers were responsible for introducing clients to the stock market and providing them with advice and guidance. As the stock market grew, so did the need for more specialized services. This led to the development of introducing brokers, who could provide more specialized services to clients.
Today, introducing brokers are still a common part of the financial services industry. They are typically employed by larger broker-dealers, and are responsible for introducing clients to the broker-dealer, as well as providing ongoing customer service and support. The IB may also provide research and analysis, as well as other services such as portfolio management and trading advice.
Table of Comparisons
| Service | Introducing Broker | Broker-Dealer |
|---|---|---|
| Introducing Clients | Yes | No |
| Customer Service | Yes | No |
| Research & Analysis | Yes | No |
| Portfolio Management | Yes | No |
| Trading Advice | Yes | No |
Summary
Introducing brokers are a type of financial intermediary that works with an established broker-dealer to provide services to clients. The IB is responsible for introducing clients to the broker-dealer, and for providing ongoing customer service and support. The IB may also provide research and analysis, as well as other services such as portfolio management and trading advice. For more information about introducing brokers, you can visit the websites of the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).
See Also
- Broker-Dealer
- Financial Intermediary
- Stock Market
- Portfolio Management
- Trading Advice
- FINRA
- SEC
- Investment Banker
- Financial Advisor
- Registered Representative
