Introducing Broker
An introducing broker (IB) acts as a middleman by matching an entity seeking access to markets with a counterparty willing to take the other side of the transaction. Generally speaking, IBs make recommendations while delegating the task of executing trades to someone who operates on a trading floor. The introducing broker and whoever executes a transaction split the fees and commissions according to some agreed upon arrangement.
- An introducing broker (IB) advises clients in the futures market but delegates trade execution and back office operations to others.
- IBs are better able to service their clients as they are local, and their primary goal is customer service.
Open demo account