Ib business refers to a business model in which an institution or individual accepts the entrustment of a commission merchant, introduces customers to the commission merchant, and collects a certain commission.
IB (introduction broker) system: a business model in which an institution or individual accepts the entrustment of a commission agent to introduce customers to the commission agent and charge a certain commission. IB system originated from the United States, and has been widely promoted in countries and regions with developed financial futures trading (United States, Britain, South Korea, Taiwan Province Province, etc.). ) and achieved success.
IB can be an institution or an individual, but it generally exists in the form of an institution. You can develop customers and accept futures option orders, but you can't accept customers' funds, and you must settle through FCM (futures commission agent, similar to futures brokerage company). IB is divided into independent practicing IB(IIB) and FCM-guaranteed IB(GIB). IIB must maintain minimum capital requirements and keep books and transaction records. GIB signed a guarantee agreement with FCM, exempting IB from the statutory requirements for capital and records. The branches and business outlets of futures brokerage companies in various places are quite similar to GIB. In the business structure of FCM, many customers and transactions of IB are much larger than those of FCM, and the introduction of IB has greatly promoted the development of American futures industry.