Interactive Brokers Introducing Broker Agreement
Omnibus Broker offers its clients customer service, marketing, registration process, cashier functions, sales entry and individual customer account records. All trades are grouped in a consolidated account and the broker must enter all client trades. An introductory broker (IB) is a broker in the futures markets that has a direct relationship with a client, but delegates the work of floor operation and trading execution to another futures trader, typically a futures commission (FCM) trader. IB is generally related to FCM, either as an independent entity partner with that trading company or as a direct subsidiary of that FCM. Introducing brokers play the same role in futures markets as stock brokers in stock markets. However, they are regulated by different authorities. Stockbrokers are registered with the Securities and Exchange Commission (SEC) and are regulated by the Financial Industry Regulatory Authority (FINRA). Futures brokers are registered with the Commodity Futures Trading Commission (CFTC) and are regulated by the National Futures Association (NFA). The agreement allows for a specialization in which IB focuses on the client, while FCM focuses on on-the-floor operations.
We offer the lowest margin credit rates of any broker, according to barron`s 2020 Online Broker Review. Click below to calculate your own interest rate for margin loans. Research and do business with multiple consultants, brokers and asset managers. Access dozens of consultant portfolios, including smart beta portfolios offered by Interactive Advisors. Accredited investors and qualified buyers can use hedge funds to search, research and invest. All fees, commissions and interest due to the broker are first transferred to the broker`s master account and then transferred every night to the broker dealers` owner account. Brokerage accounts at Interactive Brokers enable globally regulated brokers to reduce their operating, brokerage and clearing costs, while providing electronic access to the global market with our professional trading technology for white labels. An introducing broker (IB) acts as an intermediary by comparing an entity seeking to access the markets with a counterparty ready to take over the other side of the trade. Generally speaking, IBs make recommendations while delegating the task of executing trades to someone who works in a trade market.