Broker

AAA

DEFINITION of 'Broker'

1. An individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor.

2. The role of a firm when it acts as an agent for a customer and charges the customer a commission for its services.

3. A licensed real estate professional who typically represents the seller of a property. A broker's duties may include: determining market values, advertising properties for sale, showing properties to prospective buyers, and advising clients with regard to offers and related matters.

INVESTOPEDIA EXPLAINS 'Broker'

Traditionally, only the wealthy could afford a broker and access the stock market. The internet triggered an explosion of discount brokers, which allow investors to trade at a lower cost, but don't provide personalized advice. Because of discount brokers, almost anybody can afford to invest in the market.

VIDEO

Loading the player...
RELATED TERMS
  1. Dealer

    A person or firm in the business of buying and selling securities ...
  2. Prime Of Prime - PoP

    A brokerage that provides service to traders (especially Forex ...
  3. Workable Indication

    A nominal quote in the municipal bond market at which price a ...
  4. Cold Calling

    The solicitation of potential customers who were not anticipating ...
  5. Street Name

    When securities are held in the name of a broker or other nominee, ...
  6. Discount Broker

    A stockbroker who carries out buy and sell orders at a reduced ...
RELATED FAQS
  1. How does an insurance broker make money?

    An insurance broker makes money off commissions from selling insurance to individuals or businesses. Most commissions are ... Read Full Answer >>
  2. When is a share purchase marked as 'settled' by a brokerage?

    The T+3 rule governs the settlement of stock share purchases. Per the rule, set by the Uniform Practice Code, purchases of ... Read Full Answer >>
  3. What is Bernard Baruch's most lasting legacy?

    Although a wealthy financier and broker on Wall Street, Bernard Baruch's most lasting legacy is that of a public servant ... Read Full Answer >>
  4. What are the differences among a real estate agent, a broker and a realtor?

    Many people unfamiliar with the real estate industry use the terms real estate agent, broker and realtor interchangeably. ... Read Full Answer >>
  5. Can real estate agents give referral fees?

    Real estate agents can pay referral fees to licensed persons. Most state laws prohibit the paying of referral fees to unlicensed ... Read Full Answer >>
  6. 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 Full Answer >>
Related Articles
  1. 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.
  2. Active Trading Fundamentals

    How To Short Amazon Stock

    With the stock reaching all-time highs and the company gambling on several new business lines, many investors may feel it's a good time to short sell Amazon.
  3. Investing Basics

    Picking Your First Broker

    If you're a rookie investor, your first big investment decision should be an informed one.
  4. Brokers

    Evaluating Your Stock Broker

    Make sure you're getting the best service by staying informed and involved.
  5. Options & Futures

    Shopping For A Financial Advisor

    Finding your perfect advisor is as simple as shopping for a car. Read on to learn more.
  6. Options & Futures

    Broker Or Trader: Which Career Is Right For You?

    A day in the life of a broker or trader is an exciting and varied one. Find out how to decide between these two financial professions.
  7. Professionals

    Meeting Your Fiduciary Responsibility

    Being a fiduciary comes with a certain level of responsibility. These four steps will reduce your liability when managing other people's money.
  8. Professionals

    7 Tips To Help Land That Internship

    Here are some of the most important considerations to check off the proverbial list before going after that internship.
  9. Professionals

    Why Bad Credit Is Bad For Financial Careers

    In order to obtain and maintain a career in the financial industry, it is also important to have a clean credit report.
  10. Professionals

    8 Ethical Guidelines For Brokers

    We examine the less obvious ethical dangers faced by a broker, and help you avoid trouble in ethical gray zones.

You May Also Like

Hot Definitions
  1. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  2. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  3. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  4. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  5. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  6. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!