Broker Clearing Firms

All trades must be cleared by a clearing house or firm. Investopedia defines a clearing firm as, "An organization associated with an exchange to handle the confirmation, settlement and delivery of transactions, fulfilling the main obligation of ensuring transactions are made in a prompt and efficient manner."

There are a large number of clearing firms (see this list from the CME Group), and with online brokers, especially larger ones, it is very common for them to self-clear. By self-clearing trades, brokerages can cut costs and increase their margins. The savings are fairly significant.

Here is a list of the clearing firms used by the following online stock and option brokers.

Published on Monday, June 27th, 2016 .

Clearing Firm
Ally Invest Apex Clearing
Charles Schwab Self-clearing
ChoiceTrade Vision
Fidelity Investments National Financial (Fidelity)
Firstrade Apex Clearing
Interactive Brokers Self-clearing
Just2Trade COR Clearing LLC & Vision Financial Markets
Lightspeed Trading Wedbush and ML Pro and Interactive Brokers
Merrill Edge Merrill Lynch and Pierce and Fenner & Smith
OptionsHouse Apex Clearing
Scottrade Self-clearing
SogoTrade Apex
TD Ameritrade TD Ameritrade Clearing Inc.
TradeStation Securities Self-clearing

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