Firms that provide liquidity, leverage, and other support services to other market participants. Although most major banks have prime brokerage operations, there are also non-bank prime brokers in the market. Clients of prime brokers are typically other institutional participants, but in some cases, an individual trader can use a PB if he meets the broker's requirements.

Prime brokers are specialized financial institutions that provide a range of services to hedge funds, institutional investors, and other large investment clients. These services include trade execution, clearing, custody, financing, and risk management. By offering access to multiple markets and financial instruments, prime brokers facilitate more efficient and strategic trading activities. They also provide leverage, enabling clients to amplify their trading positions, and offer consolidated reporting, which simplifies portfolio management. Additionally, prime brokers offer capital introduction services, connecting clients with potential investors. Through these comprehensive services, prime brokers help clients optimize their trading strategies, manage risks, and enhance overall operational efficiency. Major banks and financial institutions often serve as prime brokers, leveraging their extensive resources and market expertise.