introducing broker (IB)
- A person who isn't registered as an Associated Person of a futures commission merchant and who solicits or takes orders for futures commodity purchase or sale on an exchange, yet doesn't accept any assets to ensure or secure the resulting trades or contracts
- John works as an introducing broker to help his clients navigate the commodities market.
- Most introducing brokers rely on their expertise and market knowledge to guide their clients' decisions.
- Even though an introducing broker can't accept any assets to ensure trades, their role is critical in the futures market.