Seeking science, what is IB?
An introduction broker (IB) can be an institution or an individual, but it usually 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 IB customers and transactions are much larger than FCM's direct development, and the introduction of IB has greatly promoted the development of American futures industry. Brokerage IB (introduction broker) system: refers to the brokerage firm acting as the introduction broker or futures trading assistant of the futures company. The auxiliary business of futures trading includes attracting customers, opening accounts for customers on behalf of futures companies, accepting customer orders and delivering them to futures companies for execution. Generally speaking, brokerage IB system is a mode in which brokers introduce customers to futures companies and futures companies pay certain commissions to securities companies.