Discussion in 'Index Futures' started by Jim bashaw, Mar 14, 2002.
How does a persom tell if a broker is an Independent IB or a Guaranteed IB ??
Anyway, what is the difference ?
How much you pay.
Good question FX- I have no idea but people seem to make a distinction.As i understand it , the FCM controls the clients money so who cares about broker stability???
with no reference to easyscreen (which is an ISV and not a broker) wouldn't broker stability or financial soundness have an impact on upgrading servers, having the latest equipment, software upgrades, retention of staff etc.
surely the points you mentioned relate to clearers, not IBs?
yes and no. depends on the relationship between the broker and the clearer. Some brokers may run/route the software and give-up to the clearer.
apart from wholly owned subsidaries - who does that?
You can ask the brokerage firm themself if they are independent or guaranteed. Otherwise call the NFA at 800-621-3570.
Guaranteed means the IB can only use one FCM and that FCM posts money to guarantee them.
Independent means an IB can clear one or more FCMs and they post their own moey.
Separate names with a comma.