Agency Broker

AAA

DEFINITION of 'Agency Broker'

A broker that acts as an agent to its clients. When acting as the agent, the agency broker must look after its clients' best interests, which involves attempting to fill client orders at the lowest price and in the fastest way possible. Common clients of an agency broker include large institutional funds that place large block orders.

INVESTOPEDIA EXPLAINS 'Agency Broker'

An agency broker is a broker that acts as a middle man to the stock exchange, and places trades on behalf of clients. This is in direct contrast to broker-dealers, who purchase orders from clients and then sell these blocks into the market. Special care must be taken when using any broker, as there may be hidden fees associated with placing trades.

RELATED TERMS
  1. Outside Broker

    1. A real estate salesperson and deal facilitator who works for ...
  2. Brokerage Supervisor

    A brokerage company employee who appoints, trains and manages ...
  3. Broker Of Record

    In insurance, a broker of record is an agent designated by the ...
  4. Brokerage Department

    A department within an insurance company whose agents specialized ...
  5. Agent

    1. An individual or firm that places securities transactions ...
  6. Full-Service Broker

    A broker that provides a large variety of services to its clients, ...
Related Articles
  1. Personal Finance

    Losing Money? Don't Blame Your Broker

    Tempting as it is to pass the buck for your losses, the true culprit may be closer to home.
  2. Brokers

    Brokerage Functions: Underwriting And Agency Roles

    Learning about these various activities can give insight into how securities are issued and traded.
  3. a list of questions and actions that will help ensure that neither your broker, nor your brokerage firm, is ripping you off
    Brokers

    Evaluating Your Stock Broker

    Make sure you're getting the best service by staying informed and involved.
  4. Professionals

    Tips To Get Into A Broker Training Program

    Becoming a registered representative isn't easy. Learn how to succeed at the first step.
  5. Investing

    Fee-Based Brokerage: Will They Work For You?

    Learn the pros and cons of this type of investing and whether it will work for you.
  6. Brokers

    Key Differences Between M&A Advisors And Business Brokers

    For a buy, sale or partnership for one's business, one needs brokers and advisors to proceed ahead. Here are the key differences between business brokers and M&A advisors.
  7. Trading Strategies

    Not All Online Trading Brokers Are Created Equal

    The online trading broker market is becoming more and more competitive. Small differences between them can add up to big fee savings for you--or losses.
  8. Brokers

    How long does it take a broker to confirm a trade after it is placed?

    Learn about placing trades with a broker and the amount of time required to received confirmation of different types of orders, such as limit and stop-loss.
  9. Trading Systems & Software

    How do you know if a trade placed to a broker is confirmed?

    Learn how to check if trades placed with brokers online or over the telephone have been filled and confirmed. Explore different types of orders.
  10. Steps to pick the right options brokerage account depending on your needs, style of trading, etc. It should be unbiased - This article is mainly for a trader who does not know how to pick a option brokerage account
    Options & Futures

    Pick the Right Brokerage Account for Options Trading

    Follow these steps to pick the right options brokerage account depending on your trading needs and style of trading.

You May Also Like

Hot Definitions
  1. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  3. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  4. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  5. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  6. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
Trading Center