Introducing Brokers

Overview

Being an Introducing Broker with OEC is a great way to increase your income potential with a product and service you know you can trust.

To meet the challenge of today's electronic trading industry OEC has invested considerably into research, planning, development, infrastructure partnerships and service to provide a fast, reliable and secure execution and clearing operation. With our Lead and Client management, Service and Support and powerful, efficient back office solutions you will be able to run a more efficient operation so you can spend less time managing your back office operations and spend more time with managing customer relationships.

Types of Introducing Brokers

An IB is essentially a business partnership with an FCM, each handling their own specific responsibilities. The FCM maintains execution, floor and back office operations while the IB's maintain the customer relationships by soliciting and/or accepting commodity futures orders from customers.

There are two types of introducing partnerships:

Guaranteed Introducing Broker (GIB)

GIBs have an exclusive relationship with one FCM. All of the accounts of the GIB are held by the FCM. The FCM uses its capital to "guarantee" the operations of the IB as well as oversee compliance. Client accounts with GIBs are backed by the capitalization of the FCM, not the IB.

Independent Introducing Broker (IIB)

An IIB is self-guaranteed and must maintain its own minimum capital as well as compliance. IIB's can trade with multiple FCMs. Client accounts with GIBs are backed by the capitalization of the IIB, not the FCM. The National Futures Association (NFA) maintains strict financial and compliance requirements for non-guaranteed firms.