Introducing Broker / IB Clause Samples
The Introducing Broker (IB) clause defines the role and responsibilities of an introducing broker in a financial or trading agreement. Typically, this clause outlines that the IB acts as an intermediary, referring clients to a brokerage firm but does not handle client funds or execute trades directly. For example, the IB may provide client introductions, assist with account setup, and offer customer support, while the main broker manages the actual trading activities. The core function of this clause is to clarify the scope of the IB’s involvement, ensuring all parties understand the division of duties and regulatory responsibilities, thereby reducing confusion and potential liability.
Introducing Broker / IB. 3.24.1. If the Client is introduced to the Company by a third person (referred to as "IB" or Introducing Broker), the Client acknowledges that the Company is not liable for the actions or statements made by the IB. The Company is also not obligated to adhere to any separate agreements made between the Client and the IB.
3.24.2. The Client recognizes and affirms that their agreement or association with the IB could lead to extra expenses, as the Company might be required to cover commission fees or charges to the IB.
3.24.3. The Client, who has been referred by an IB, can ask to be disconnected from that particular IB at any given moment. In such a case, the Company and/or its Affiliates hold the right to decide, at their own discretion, whether or not to fulfill this request.
3.24.4. The Company and/or its Affiliates have the right to decide whether or not to proceed with the Client's request to change its IB and be linked to another IB.