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Postby akshita.r.garg » Tue Jun 21, 2016 9:58 am

What does horizontal brokerage, directed brokerage and straight brokerage mean?

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Re: Brokerage

Postby edupristine » Tue Jun 21, 2016 11:40 am

Hi Akshita

A brokerage account is an arrangement between an investor and a licensed brokerage firm that allows the investor to deposit funds with the firm and place investment orders through the brokerage, which then carries out the transactions on the investor's behalf.

Directed Brokerage - A practice in which a fund adviser, at the behest of its client, directs a trade to a specific broker-dealer for execution in return for some sort of benefit. Such benefits can include services or payments. Unlike soft dollar arrangements, the benefits are realized by the client, not the adviser.

Straight through processing - Its a type of online broker, it is connected to one or more liquidity providers and forwards the trades of its clients to the liquidity provider that currently offers the best price.

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