I was just approached by eroomsecurities -- asking me if I'd like to open an account with them. I read over their site, but I'm still not exactly sure what are the differences, or added benefits, of using that kind of broker over my existing normal one that I'm already happy with.
Professionals are traders by profession, they usually have a trading license earned after successfully taking some exams, for example this one https://en.wikipedia.org/wiki/Series_7_exam They then get some benefits at the brokerages (for example cheaper commissions and permission for naked short selling), but have usually other higher costs (like for data etc.). Institutional accounts are company or advisor accounts. There are also variations like Small Business Account, Family&Friends account, etc. Retail account is just an Average Joe account. Compare especially the costs (commissions and costs for data) to see if it is a good offer for you...
Eroom is an introducing broker just like the firm I work for, Victor Securities. We introduce business to the clearing firms (We are Introducing Brokers to Merrill Lynch Professional, Apex Clearing, ADM Investor Services & INTL FC Stone) and manage the relationship as the broker on the account and single point of contact for all business even though your account will be custody and cleared at the clearing broker. We also provide the platforms to trade on and the routes to the exchange. Since I don't know where you trade right now, I can't tell you the difference between a institutional relationship and what you use now. IMO, it is easier to run a business through a relationship like ours. And, the cost of trading might be lower than your current relationship even though it is a more person relationship. Bob
I currently trade through Eroom and have been very happy with them. As Rmorse mentioned they are an introducing broker and your account will clear through another firm. The advantage of dealing with and Eroom or Rmorse's Victor securities is you basically will have more choices on software you can use to execute your trades. You will have an opportunity to potentially save money in commissions as well, depending on your volume. You will also have excellent customer service from an introducing broker such as these, helping you with other technology.