What is institutional brokerage?
Institutional broker is a brokerage company that focuses on clients who do business to hold and cultivate assets. It often focuses on institutions such as corporations, pension funds, mutual funds or insurance companies. Depending on the method in which brokerage is structured, it may or may not provide services to retail or individual clients, unless their business level is similar to the institution level.
It is not uncommon for institutional mediation to specialize in a particular type of fund or corporation as on its main clientele. For example, brokerage can only work with insurance companies only and help these clients grow basic assets that help support their business. Other mediation can be more focused on helping corporations in the use of mutual funds as a means to grow pension benefits for employees. This type of specialization is often considered an advantage because institutional brokerage thatIt focuses on and is aware that a specific area of investment will be an expert and will be able to provide their clients with more full information.
Most institutional brokerage companies offer their clientele a wide range of services and support. Together with basic investment services, brokerage will also probably offer various forms of investment research, opportunities to participate in seminars on various financial issues and strategies and various forms of administrative support. Many companies today offer online access to accounts, as well as weekly or monthly newsletters containing interests for clients. While almost any institutional brokerage offers real -time support during normal working hours, there are also those who also offer direct contact with the broker after hours and even on weekends. Depending on the nature of the institution involved, this type of support can be very important.
The selection of the right institutional brokerage involves closely exploring fees and fees associated with different types of transactions and on road travel provided to the investor, including how easy it is to address someone outside the peak. It is also important to consider the ability to make orders online or by telephone and quality of services and support received in terms of investment counseling and research. If the mediation is a tendency to serve a wider clientele, it is necessary to ensure that the company determines the level of professional competence with a specific type of institution and ensures that it is a good match for a potential client.