A soft dollar broker is any broker who offers services in addition to executing trades, but does not charge directly for those services. A soft dollar broker will typically charge more than other brokers for trading, then use the additional money to cover the costs of the additional services. These services must be related to trading, and typically include research, high-end electronic trading platforms, and other tools to monitor and analyze the market.
Traders who use a soft dollar broker typically use several different brokers. Traders often trade the minimum amount at each soft dollar broker to pay for their special services, then do the remainder of their trading at a less expensive broker. Trade-Ideas offers services complementary to the services already offered by most soft dollar brokers. Our service makes it easier for the broker’s customers to trade, especially when we integrate with the broker’s existing services, thus helping the broker generate more business. Our white label services give the trader a constant reminder of which broker is providing their tools.