Introductory broker (IB) refers to an individual or institution that seeks or accepts customers' futures trading instructions for a futures brokerage company (FCM) to attract customers, but does not hold customers' funds and charge customers any fees. Because they don't accept customers' funds, their business is limited, IB is generally weak, and futures companies are generally strong. The business scope of an introduction broker is generally to attract futures traders to engage in futures trading, and to act as an agent for futures traders to accept customers' accounts, accept futures trading instructions from futures traders and deliver them to futures traders for execution.

There are generally two forms of IB: the first is the guarantee referral broker (GIB). If IB signs a letter of guarantee with a futures brokerage company, and the futures brokerage company agrees to guarantee IB's obligations according to the Commodity Exchange Law, then IB will become a guarantee broker of the futures company. In the United States, about 70% of the referral brokers are gib, and the guarantee referral brokers can only introduce customers to one futures company; The other is unsecured referral broker, also called independent referral broker (IIB). About 30% of referral brokers are IIB, and independent referral brokers can introduce customers to several futures companies. Introducing brokers has the following characteristics: 1. Do not have the membership of the exchange; 2. It is necessary to establish specific contact with the futures brokerage company, and the futures brokerage company will handle the customer instructions for it, and the futures brokerage company also has the responsibility to report the handling situation to the brokerage company; 3. If the recommending broker is willing, it can directly transfer the customer to the futures brokerage company and charge a certain referral fee to the futures brokerage company; 4. Referral brokers cannot charge any fees to customers, but only to futures brokerage companies; 5. Do not accept trading funds from customers.

The related parties of IB mainly include customers, futures brokerage companies (FCM), Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA). Clients recruited by referring brokers should directly sign futures trading contracts with futures companies, just like other clients, but referring brokers and clients should also sign a referral broker agreement and a risk disclosure statement (sometimes the risk disclosure statement can be used as an annex to the referral broker agreement, without having to sign it separately). If the customer makes it clear that he is unwilling to sign an agreement with the referral broker and does not need the services of the referral broker, then the referral broker will not be able to get a commission from the customer.

IB and the futures company need to sign an introduction brokerage agreement to specify the rights and obligations of both parties. For independent brokers, the rights and obligations of brokers and futures companies are embodied in the cooperation contracts of both parties, which generally include: first, the names of both parties to the contract; Second, the provisions on commission distribution and other expenses; Third, introduce the business scope of brokers and other implementation procedures; Fourth, the scope of information and services provided by both parties to customers; Fifth, the handling of transaction disputes; Sixth, the validity of the contract, the change of terms, the dissolution and termination of the contract, and so on.

However, the recommendation broker and the futures company must sign a guarantee agreement. The content and format of the guarantee agreement shall be stipulated by the Commodity Futures Trading Commission and shall not be changed. The guarantee agreement determines that the futures company shall bear the guarantee responsibility for the debts of the guaranteed recommended securities firm within the validity period of the agreement.