Trading Securities - Brokers

Commission House Broker



A commission house broker is an employee of a member organization and will execute orders for the member’s customers and for the member’s own account.



Two Dollar Broker



A two-dollar broker is an independent member who will execute orders for commission house brokers when they are too busy managing other orders.



 



Registered Traders


Related Articles
  1. Professionals

    OTHER OPTIONS EXHANGES

    Specialist The specialist is a member of any other option exchange that is required to maintain a fair and orderly market for the options in which they specialize. The specialist is required ...
  2. Professionals

    The Chicago Board Option Exchange

    The CBOE functions in many ways, exactly like other exchanges, except it has one major difference. The CBOE does not use a specialist system like the one used on all other exchanges. The specialist ...
  3. Investing Basics

    How To Choose The Right Online Trading Broker

    The online broker market is becoming more competitive, but differences exist in services that can help traders choose the broker that’s right for them.
  4. Investing Basics

    Picking Your First Broker

    If you're a rookie investor, your first big investment decision should be an informed one.
  5. Investing Basics

    Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.
  6. Investing Basics

    Why Use a Discount Broker?

    A discount broker is a stockbroker that does not offer clients investment advice, but trades shares for a smaller commission than a full-service broker.
  7. Forex Education

    Is Your Forex Broker A Scam?

    While the forex market is slowly becoming more regulated, there are many unscrupulous brokers who should not be in business.
  8. Forex

    How Forex Brokers Make Money

    Forex brokers set their prices based on commission, spread, or a combination of both. Traders have to be cautious in the thinly regulated forex market.
  9. Forex Education

    Forex Broker Guide: Broker Basics

    RegulationA reputable forex broker should have rules, programs or services to protect the integrity of the market. They should protect the public from fraud, manipulation and abusive practices ...
  10. Professionals

    What Does a Broker Do?

    In the investment world, broker is a term used to refer to an individual or entity that helps facilitate trading in financial securities.
RELATED TERMS
  1. Executing Broker

    The broker or dealer that finalizes and processes an order on ...
  2. Two Dollar Broker

    A floor broker who executes orders for other brokers who cannot ...
  3. Give Up

    A procedure in securities or commodities trading where the executing ...
  4. Commission Broker

    Someone who gets paid by the brokerage company for which he works ...
  5. Each Way

    A slang phrase used when a broker earns commissions from both ...
  6. Discount Broker

    A stockbroker who carries out buy and sell orders at a reduced ...
RELATED FAQS
  1. I'm new to this. Can I sell or buy stock by myself?

    In order to buy stocks, you need the assistance of a stock broker since you cannot just phone up a company and ask to buy ... Read Answer >>
  2. There are so many stockbrokers out there. How do I go about choosing the best one ...

    If you decide that you have the knowledge and experience to take on stock investing, or if you feel you would like to give ... Read Answer >>
  3. How does an insurance broker make money?

    Discover how an insurance broker makes money. Insurance brokers are important in helping people find the right insurance ... Read Answer >>
  4. My broker just sold securities out of my account without my permission. Is this legal?

    Your broker's actions are not legal unless he or she sold the securities under certain conditions. Let's look at the two ... Read Answer >>
  5. What is the difference between a broker and a market maker?

    A broker is an intermediary who has a license to buy and sell securities on a client's behalf. Stockbrokers coordinate contracts ... Read Answer >>
  6. Does a broker always have to buy a stock if I want to sell it?

    There are certain times when a broker must purchase the stock that you are selling. For example, if the broker is a market ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center