Becoming an Introducing Broker...

Discussion in 'Retail Brokers' started by vix, Feb 9, 2004.

  1. vix


    Does anyone have any practical experience or advice for a person interested in becoming an IB. Either for an established firm or creating a new firm?
  2. vix


  3. Why? What are you trying to do?
  4. vix


    Trying to let my trading account grow without taking profits to live off of while staying in the markets full time. I have a marketing and sales background so it seemed like the most logical thing to do.
  5. Being a BD is no gravy train especially with the current regulatory environment!!!!

    Also with pricing so competitive!

    The barriers to entry, capital, compliance, technology, etc. are just too high for most individuals and small groups.

    It is just like the mom and pop corner grocery stores. With very few exceptions, small BD operators can not survive in the current environment.

    In a past life I was director of compliance at an independent BD.

    I also have owned controlling interest in an independent BD. I speak from experience.

    Right now you could not get me to start a BD if you put a gun to my head!!!! :D :D :D
  6. vix


    What about becoming a broker for commodities, futures, currency, etc? Any thoughts?
  7. I don't know about those markets.

    I suspect with your comment about not wanting to take money out of your account to live on that you might want to consider being a representative for a firm not becoming the firm first.

    Good Luck:)
  8. ktm



    Nuts meant broker by "BD", not sure if you saw his post?

    I agree with him.

    It's a pain in the ass to maintain all the compliance and paperwork. Why not just get the CTA/CPO and manage the money? That seems an easier way to grow yours (and others?) without all the IB headaches. It seems like unless you got a lot of folks to be your customers - which would require staff and overhead - that the small amounts from commissions wouldn't add up to much? Just my 2 cents.