What Is a Clearing Broker Dealer?

As a self-clearing broker/dealer, your trades are completed quickly and effectively. In fact, because LPL is self-clearing, you can open 99.5% of common account types online, including most advisory accounts, and immediately start performing investments.

All trades and businesses are processed within a location, eliminating third-parties and reducing costs by using a single sophisticated platform. With no need for a third party to conduct investments, you’ll also save important time to invest on other business-building activities.

Broker/dealers, advisors, and institutions trading through LPL’s platform have access to an array of powerful product, technology, and support methods to address client needs and support business growth.

With the scope, scale, technology, and intensive resources made available from LPL, you’re in a competitive position to aid your clients’ evolving needs, and build, more lasting relationships.

Exclusive benefits. Increased potential.
Straight-through processing means you can be confident your trades will have the priority handling they deserve. When you decide to trade through LPL’s self-clearing platform, you access resources like these, all made to support your business and benefit your bottom line:

RQD* Clearing is over a mission to transform the antiquated post-trade landscape. Throughout the quality of our people and technology, we deliver stable, secure, next-generation clearing solutions. This empowers our correspondent partners to offer an unparalleled experience for their clients.


Free cost basis for all accounts
Consolidated account statements, showing brokerage positions, mutual funds, and the positioning of selected annuities held at the carrier
Streamlined compliance procedures
Automated trade credit for electronically placed trades
Detailed administrative reports that keep an eye on trading activity and policy implementation

A clearing broker dealer is a financial industry professional who serves as the go-between for brokers (often known as introducing brokers) and clearinghouses. They work to ensure smooth businesses and transactions between investors and the ones they obtain. Clearing brokers are in charge of both buy and sell orders, as well as custody of the securities of the clients. This is a bit not the same as a self-clearing broker dealer, who not work with a clearinghouse but is instead authorized to execute both functions themselves.

Clearing Broker Basics
Clearing companies work with clearing brokers to handle the smooth and efficient procedure of the securities they deal. Clearing brokers are generally the only real type of broker-dealers who are authorized to actually clear transactions. As soon as they determine that a trade is settled appropriately and that it’s complete, they work with a clearinghouse to ensure proper handling and transfer of funds.

Those who work as clearing brokers have deep understanding of the securities market, that enables the system to run proficiently and securely. In addition to clearing transactions, clearing brokers are expected to analyze and confirm whatever transaction information they may be directed at ensure its legitimacy.

They also manage whatever funds are associated with confirmed trade. The obligation positioned on a clearing broker underscores the value of their trustworthiness and competence, and throughout a trade, Speed Trader explains that the clearing broker assumes all financial and legal responsibility for that trade. The Financial Industry Regulatory Authority (FINRA) explains they are often tasked with separation of the client funds and securities that they hold in their custody, as well. Clearing brokers and the clearing houses that they be employed by also are necessary to maintain higher degrees of net funds than introducing brokers.