Category: INSTITUTIONAL BROKERS
Brokers who deals only with exclusively large clients are known as Institutional Brokers. They are specialized in security trades for institutions such as banks and pension funds. Institutions usually trade in large blocks that require special handling. Because of large volumes of securities they trade institutional brokers typically charge lower commission fees than retail brokers.
Institutional brokers focus on clients who are in business to hold and grow assets. Often, the focus is on institutions such as corporations, pension funds, mutual funds, or insurance companies. Depending on the way that the brokerage is structured, it may or may not provide services to retail or individual clients, unless their trading levels are similar to those of an institution.
Most institutional brokerage firms offer a wide range of services and support to their client. Along with the basic investment services, the brokerage is also likely to offer various forms of investment research, opportunities to attend seminars on various financial issues and strategies, and various forms of administrative support. Many firms today will offer online access to accounts, as well as weekly or monthly newsletters containing items of interest to the clients. Before choosing your institutional broker you must closely look at the fees and different charges associated with different types of transactions, their avenues of communication they offer to their customers.