If you want to invest in structured finance products or in traditional platforms, know that this is not an easy endeavor. So to protect yourself and your interest, you must have a good grasp of the different players in the field of investment.
A key player is the introducing broker or IB broker. This professional will place pending trades in behalf of his client.
Different Roles Of An IB Broker
First, he will meet with his clients and help them come up with excellent investment decisions. Be aware that the clearing firms (Futures Commission Merchant or FCM) will work with the introducing broker. The FCM, on the other hand, will perform various functions like maintaining a functional and orderly trading platform, connecting with exchanges to clear trades, provision of accounts statements, and depositing funds to customer accounts.
Second, he will make the complexities of trading easy and accessible to understand for retail customers. He can help people who are making their foray into investment less confusing and easier. He will act as a middleman between the exchange market and retail investors.
Introducing brokers offer a wide range of services, depending on the needs of their clients. These include technical support for online traders and tasks related to customer service.