I have to ask, I want to start my own brokerage business, and I would like to hear from the professionals if it's better at first to start as Introducing Broker and when things get better to go full BD?
Introducing Broker vs. Broker dealer
- Thread starter veryFatcat
- Start date
I am reading what's on the NFA web site
http://www.nfa.futures.org/nfa-registration/ib/index.HTML
and also on Gains capital
http://www.gaincapital.com/partners-whitelabel.shtml
It seem's easy, I have to give them a call tomorrow and see what is exactly they want to start this.
http://www.nfa.futures.org/nfa-registration/ib/index.HTML
and also on Gains capital
http://www.gaincapital.com/partners-whitelabel.shtml
It seem's easy, I have to give them a call tomorrow and see what is exactly they want to start this.
today I have notised that one of the brokers that I have an account with is not a Broker dealer, Options house, they are Introducing Broker to a bank in Canada.
it's an issue because my order dosen't get sent to the exchange, it get's trade it in house.
That is a another issue. At all these "discount" brokers, they offer a smart route. Your order goes through a dark pool first, then to an exchange, maybe. This has nothing to do with being an introducing broker. This has to do with if your being offered full DMA access to the exchanges. At a firm like TD Ameritrade, you will have the same issue. They self clear but get payment for order flow from firms like Knight Capital. Even a firm like IB charges extra for non smart route orders.