Carrying brokers are brokers, or even brokerage firms, that tend to operate in the back, carrying out tasks for deals other brokers make.
They can offer a number of services, such as settlements and various custodial services. They want to focus on the administrative tasks, not so much the selling to investors. The introducing broker does that. The introducing broker seeks out investors and manages their portfolios.
You know how people will say they “know a guy”? That guy is the introducing broker.
But the introducing broker may not have time to send out the payments on these investments, track each share, and send out the statements of each action to the investors. That’s where the carrying broker comes in. The relationship between these two sides of brokers is very common...in fact, Goldman Sachs and J.P. Morgan (Chase bank) offer carrying brokerage services.
Often, carrying brokers are 24-hour, full-service groups that offer the use of the most sophisticated software and reporting tools...tools the smaller introducing brokers might not be able to afford, or be able to use to full capability. This arrangement lets people really excel at what they’re good at.
An introducing broker might be the definition of a social butterfly, the belle of every ball, everyone’s financial Prince Charming, whichever strikes your fancy. This lets the belle go to every ball, make the connections, answer questions, and educate their clients, without having to tackle the mountain of paperwork on their own. They can really be “the guy.”
Related or Semi-related Video
Finance: What is a Floor Broker v. Floor...13 Views
Finance allah shmoop What is ah floor broker versus a
floor trader All right Well here's a floor fixer and
here's a floor broker but okay Shocking a floor broker
Brokers stocks on the floor of a stock exchange Right
Well here's the new york stock exchange here's its floor
These guys down here they're floor brokers That is they're
trading stocks and other securities on behalf of their clients
Basically this is the scene from trading places with eddie
murphy Great old film Old rich white guys in a
building up here Call down to their guys on the
floor who execute their bidding All right well it's a
bunch of brokers all trading their clients stocks right here
and here And here and here and here all over
the world within among each other So that money is
well pushed around thoroughly like that Cato's in grandma's hash
browns recipe Note that a floor broker is different from
a floor trader Who although he or she works on
the floor of an exchange also makes trades as a
principal for his or her own account So yeah that's
floor broker No jackhammer required Thank you very much Go
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