Prime broker clients come in all sizes, from all over the world, from small start-up hedge funds to huge multinational banks. In this guide explain what different types of prime broker clients are.
Boutique prime brokers
Boutique prime brokers can provide an entire operational framework and reading infrastructure for small and start-up hedge funds that are too small for tier 1 prime brokers. Boutique prime broker will often have direct relationships with larger prime brokers and resell services on a wholesale basis to their clients.
Mini prime brokers
A mini prime broker is simply a prime broker that accepts small institutional accounts. Mini prime brokers are more appropriate for start-up and new hedge funds. Compare the best UK based mini prime brokers authorised and regulated by the FCA here. You can switch to a mini prime broker that offers the type of investment that you need for your hedge fund.
Small hedge funds
If you have a small hedge fund take you can find a mini prime broker here. We work with the best prime brokers for small to medium sized hedge funds that can assist with your trading and fund strategy, including custodian services, regulatory umbrellas, research, analysis and outsourced back office systems.
Start-up hedge Funds
The top tier prime brokers are shutting down all their smaller accounts so start up hedge funds need a mini prime broker or mid-tier prime broker. Our prime broker finder tool can help your start up hedge fund find top prime brokers that are most appropriate for your investment strategy.
Large hedge funds
A hedge fund prime broker is the main account a hedge fund holds it’s positions with. Hedge funds may use executing brokers for buying and selling positions and then give up those positions to their main account at the end of the day.
Prime of prime brokers
A prime of prime broker will provide retail brokers with market access. This is common in CFD and Forex platforms where the forex brokers act more as marketing matching and the prime of prime broker provides the liquidity back office, platform and administration of the accounts.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
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