FCM and IB Regulations: Rapid Fire
Chapters in this video
- 0:00 IBs never hold customer money: the restaurant analogy
- 1:16 Guaranteed versus independent IB: one backer or stand alone
- 2:27 Net capital tiers: FCM $1M, independent IB $45K, guaranteed IB $0
- 3:50 Margin is a performance bond, not a loan
- 4:41 Complaint handling and account adjustments
- 5:23 Order stamping: receipt, transmission, execution
- 6:18 Advertising, hypothetical results, and cost disclosure rules
- 6:53 Rapid-fire exam recap
What this video covers
- Why an Introducing Broker (IB) never accepts or holds customer money, and where every customer dollar actually goes
- The guaranteed IB versus independent IB distinction: one FCM backer with no net capital versus standalone status with $45,000 and multiple FCM options
- The three capital tiers: FCM at $1,000,000, independent IB at $45,000, guaranteed IB at $0
- How financial reporting deadlines flow from net-capital responsibility: monthly unaudited for FCMs, semiannual for independent IBs, none for guaranteed IBs
- Why futures margin is a performance bond, not a loan or partial payment, and why only the carrying FCM collects it
- The receipt stamp on every order, the transmission stamp only for commodity option orders, and the five-year retention rule
- What promotional material may not do, and why hypothetical results need the cautionary disclaimer while testimonials need paid disclosures
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 3 course also includes adaptive practice questions and spaced-repetition flashcards, free through the end of 2026.