What is Agency?

Agency is a specialized type of brokerage transaction where the broker acts on behalf of their clients to execute client trades. Unlike a typical broker, agency brokers do not hold inventory in the securities they buy and sell. Agency traders only generate revenue as a commission from the Customer they are brokering the deal on behalf of. There are several benefits of this type of agency broker, such as objectivity, access to a wide range of market participants, protection of confidential information, cost and transparency. 

cieTrade supports this type of brokered workflow with a special version of the Brokerage worksheet. The Supplier and Customer details of the trade are both entered but the extensions do not generate AP or AR for either side. The only payable generated is in the expenses section so the broker can enter their commission. Commission can be expressed in flat, per UOM or %. 

If you would like to use this workflow, please click here to see the help file with step-by-step instructions. 

If you have additional questions, please contact the Support Team via email to support@cietrade.net.