Introducing Broker (IB)

An introducing broker (IB) is a person or firm that introduces clients to a market maker or other broker for the purpose of executing trades. IBs do not execute trades themselves, but instead act as intermediaries between clients and market makers.

IBs typically charge a commission for each trade that they facilitate. The commission is typically a percentage of the trade size, and it can vary depending on the type of trade and the market maker.

IBs can be helpful for clients who do not have the time or expertise to trade on their own. IBs can also provide access to a wider range of markets and products than clients would have access to on their own.

However, it is important to note that IBs are not regulated by the same authorities as brokers. This means that IBs may not be subject to the same level of oversight as brokers. As a result, it is important to do your research before choosing an IB.

Here are some of the benefits of using an IB:

* Access to a wider range of markets and products
* Expertise and guidance from a professional
* Convenience and ease of use

Here are some of the risks of using an IB:

* Not subject to the same level of regulation as brokers
* Higher commissions
* Potential conflicts of interest

If you are considering using an IB, it is important to do your research and understand the risks involved. You should also make sure that you choose an IB that is reputable and has a good track record.