guaranteed introducing broker

guaranteed introducing broker definition - finance
A broker who matches up traders with brokerage firms that will execute the orders. A guaranteed introducing broker doesnÂ’t take any payment, but his or her operations are guaranteed by the futures commission merchant (FCM), which does accept money from clients and executes trades. A guaranteed introducing broker has no minimum capital or financial reporting requirements. All of the accounts of a guaranteed introducing broker must be carried by the guaranteeing FCM.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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