Definition of Correspondent Broker Dealer

Correspondent broker dealer is a broker dealer who introduces customer accounts to a clearing broker dealer.

Applying "Correspondent Broker Dealer" to Securities Exams:

A correspondent broker dealer also known as an introducing broker dealer executes orders for customers and for its own account and sends all of the information to the clearing broker dealer. The clearing broker dealer carries all customer and firm assets and sends out customer confirmations and statements.

Preparing for an Exam?

Receive 15% off all your Securities Exam Prep materials

Please wait....

Your Cart