Brokerage settlement mode means that the fund company manager issues fund trading instructions to brokers, and brokers increase or decrease the transaction amount in real time, and then send the settlement data to the fund company manager after splitting. Under the brokerage settlement mode, the process is complicated and the transaction speed will be slow, which may lead to the delay in receiving data by the fund company manager, making the fund investment not grasp the best opportunity. However, the brokerage settlement model has one advantage, that is, fund managers do not have to pay settlement reserves and deposits.

The difference between brokerage settlement mode and custody settlement

1. Different settlement methods: brokerage settlement refers to the settlement of funds by securities companies, and all the settlement of funds in the whole transaction process is handled by securities companies; Literally, the custody settlement is completely handed over to the custody bank for fund settlement, mainly because the settlement participants settle with Deng Zhong;

2. The deduction of funds is different: for the collection of commissions, brokerage settlement and custody settlement are the same, and both are based on the final transaction price multiplied by the corresponding commission rate. The brokerage settlement transaction funds are directly deducted from the account, and the deducted commission is also directly deducted, while the custody settlement needs to be settled once in a certain period.