eCFR :: 31 CFR Part 1026 Rules for Futures Commission Merchants and Introducing Brokers in Commodities

Enter the Introducing Broker section in your Client Area and confirm you want to become an IB. Your IB room will open, and you will find everything you need under the “Referral Materials” section, including referral link, code and marketing material. Using the numerous marketing materials provided, start attracting traders. Recommend your clients to open a Pro account and they will get a 5% discount on the commission. Investment platform for copy trading, MAM, and PAMM accounts, and much more. MetaTrader trading platforms customized to corporate needs and demands.

What is a Type 4 introducing broker

Broker clients can electronically trade or the broker may input trades for the client. Invest globally in stocks, options, futures, currencies, bonds and funds from a single unified platform. Fund your account in multiple currencies and trade assets denominated in multiple currencies. Client markups by introducing brokers are limited to 15 times IBKR’s highest tiered rate plus external fees. Charge clients for services rendered based on a fee-per-trade unit for each asset class, exchange and currency.

Carrying Broker Services

For example, depending upon the manner in which the account is opened, a futures commission merchant or introducing broker may post a notice in the lobby or on its Web site, include the notice on its account applications or use any other form of written or oral notice. The CIP must include procedures for determining whether a customer appears on any list of known or suspected terrorists or terrorist organizations issued by any Federal government agency and designated as such by Treasury in consultation with the Federal functional regulators. The procedures must require the futures commission merchant or introducing broker to make such a determination within a reasonable period of time after the account is opened, or earlier if required by another Federal law or regulation or Federal directive issued in connection with the applicable list. The procedures also must require the futures commission merchant or introducing broker to follow all Federal directives issued in connection with such lists. The CIP must contain procedures for verifying the identity of each customer, using information obtained in accordance with paragraph of this section, within a reasonable time before or after the customer’s account is opened. The procedures must describe when the futures commission merchant or introducing broker will use documents, non-documentary methods, or a combination of both methods, as described in this paragraph .

  • Get $25,000 of virtual funds and prove your skills in real market conditions.
  • An introducing broker advises customers but delegated transaction execution and back office activities to others.
  • ThinkMarkets is licenced and authorised by major financial regulatory bodies around the world like the FCA, ASIC, CySEC, FSCA, and JFSA.
  • IBs should test out the broker they are looking to work with by opening a live account themselves and actively using it.
  • Spreads as low as 0 pips on a ThinkZero account and 0 commission on all instruments except South African stock.

At a minimum, these procedures must contain the elements described in paragraph of this section. This verification method applies only when the futures commission merchant or introducing broker cannot verify the customer’s true identity after using the verification methods described in paragraphs and of this section. Anti-money laundering program requirements for futures commission merchants and introducing brokers in commodities. Reports by futures commission merchants and introducing brokers in commodities of suspicious transactions.

Investors’ Marketplace

Provides retail clients with USD 0 commissions on US listed stock and ETF trades. From trade date to settlement date, our Securities Financing solutions provide depth of availability, transparent rates, global reach and automated lending and borrowing tools. Understand risk vs. returns with real-time market risk management and monitoring that provides a comprehensive measure of risk exposure across multiple asset classes around the world. IBKR BestXTM is a powerful suite of advanced trading technologies designed to help clients achieve best execution and maximize price improvement while minimizing market impact. Pre-trade compliance, real-time market-risk management and monitoring provide a comprehensive measure of risk exposure. Interactive Brokers offers a full suite of robust reporting software for Introducing Brokers to pull standard statements, create custom reports, enable automatic statement delivery, and provides access IBKR’s PortfolioAnalyst.

Each of your customers will get access to our team of dedicated sales professionals, with 24/5 support in their local language. Affiliates and IBs share a common activity – they introduce clients to a specific broker and get remunerated for this. The risk of loss in online trading of stocks, options, futures, currencies, foreign equities, and fixed Income can be substantial.


Hence, introducing brokers should select a broker with a great reputation who is regulated in at least one reputable jurisdiction . Though IB’s may not be regulated, they still undergo a vetting process by the broker and will most likely be required to provide documents that confirm they are who they say they are before they get approved to act in the interest of the broker. IB’s should never forex introducing broker have to hold client’s funds or interfere with the trading processes in any way. Even IB’s who are fund managers should direct clients to fund their own trading accounts with the retail broker and pass on control of the account to them with the support of the broker. For more information read the Characteristics and Risks of Standardized Options, also known as the options disclosure document .

What is a Type 4 introducing broker

A person that is a major swap participant shall be deemed to be a major swap participant with respect to each swap it enters into, regardless of the category of the swap or the person’s activities in connection with the swap. However, if a person makes an application to limit its designation as a major swap participant to specified categories of swaps, the Commission shall determine whether the person’s designation as a major swap participant shall be so limited. A person may make such application to limit its designation at the same time as, or after, the person’s initial registration as a major swap participant. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. Introducing broker means any person registered or required to be registered as an introducing broker with the CFTC under the Commodity Exchange Act (7 U.S.C. 1 et seq.), except persons who register pursuant to Section 4f of the Commodity Exchange Act (7 U.S.C. 6f). Find out which account type suits your trading style and create account in under 5 minutes.

The Introducing Broker in Forex Trading

Our Relationships with multiple FCMs, platforms and data providers gives us greater flexibility to match your customers with their trading needs. The services of Tickmill and the information on this site are not directed at citizens/residents of the United States, and are not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. Becoming an Introducing Broker can be the easiest method to increase your income, as there’s no cost to sign up.

What is a Type 4 introducing broker

Alternatively, please contact IB Customer Service to receive a copy of the ODD. Before trading, clients must read the relevant risk disclosure statements on our Warnings and Disclosures page. Trading on margin is only for experienced investors with high risk tolerance. For additional information about rates on margin loans, please see Margin Loan Rates.

Refer Customers to Optimus And Earn as They Trade

StoneX Pro’s partner solutions offer retail brokers, financial services providers, and introducing brokers a wide variety of products, along with the tools you need to become indispensable and create long-term, valuable relationships with your clients. Each futures commission merchant and introducing broker must implement a written Customer Identification Program appropriate for its size and business that, at a minimum, includes each of the requirements of paragraphs through of this section. The CIP must be a part of each futures commission merchant’s and introducing broker’s anti-money laundering compliance program required under 31 U.S.C. 5318. The CIP must include procedures for providing customers with adequate notice that the futures commission merchant or introducing broker is requesting information to verify their identities. For brokers that need to enhance their product offering while leveraging their own brand equity, StoneX Pro offers flexible introducing broker and white labelled solutions that provide your customers with the same institutional grade trading tools, market access, and liquidity offered to our direct clients. We assist you in earning magnificent profits from your clients’ trading activity and expanding your present services by adding online FX trading.

Important Information About Procedures for Opening a New Account

We can help you develop your business by guiding you through the initial setup and maintaining the day-to-day activities for your customers. You and your customers will get access to 24/7 trade-desk support and large back office staff dedicated to swift and accurate service. Every call is answered by a person who is ready to help – no voice mails or automated messages.

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