Posts: 4
Joined: Fri Jun 03, 2016 11:03 am


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

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

Finance Junkie
Posts: 946
Joined: Wed Apr 09, 2014 6:28 am

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.

Return to “CFA Level I”


Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to and we will rectify it.