Broker Association

DEFINITION of 'Broker Association'

A permitted association between exchange members who have shared responsibility for the execution of orders placed by their customers. These members thereby gain access to a collective pool of un-transacted orders, and they share the profits and losses associated with trading activities.

BREAKING DOWN 'Broker Association'

Broker associations are permitted by regulatory bodies, and allow smaller exchange members to capitalize on economies of scale through cooperation and shared responsibilities.

RELATED TERMS
  1. Public Securities Association - ...

    The predecessor association to the Bond Market Association, which ...
  2. Clearing Broker

    A member of an exchange that acts as a liaison between an investor ...
  3. Building Permits

    A type of authorization that must be granted by a government ...
  4. Executing Broker

    The broker or dealer that finalizes and processes an order on ...
  5. Foreign Exchange Dealers Association ...

    An association of banks specializing in the foreign exchange ...
  6. Association of International Bond ...

    A professional association of bond dealers. The members consist ...
Related Articles
  1. Online Stock Traders

    Online stock traders place buy/sell orders for financial securities and/or currencies with the use of a brokerage's Internet-based proprietary trading platforms. The use of online trading ...
  2. Investing

    Should You Wade Into The Dark Pools Of Liquidity?

    Dark pools of liquidity allow big investors to trade away from the public eye. They limit market impact but may leave small investors in the cold.
  3. Professionals

    Is The Series 24 Exam Hard?

    What makes the series 24 so challenging? The exam focuses very heavily on the supervision of trading and market making and the supervision of investment banking.
  4. Active Trading

    Should You Be Afraid Of Dark Pool Liquidity?

    Don't fear the deep end. Dark pool liquidity can help drive down stock cost for everyday investors.
  5. Home & Auto

    Top Regions For Homebuilding Recovery

    The "New Residential Construction" report shows housing starts are continuing to recover.
  6. Charts & Patterns

    How To Become A Private Equity Associate

    With the right planning, second- and third-year investment banking analysts can graduate to an associate position at a private equity firm.
  7. Term

    What are Articles of Association?

    Articles of association are a document that specifies the regulations for a company’s operations.
  8. Investing

    How To Start Trading: Order Types

    The types of orders you use can have a large effect on your trading performance, so understanding the different order types is important to your success.
  9. Active Trading Fundamentals

    The Basics Of Trading A Stock

    Taking control of your portfolio means knowing what orders to use when buying or selling stocks.
  10. Brokers

    Explaining Market Orders

    A market order is the most common order used to purchase a financial security.
RELATED FAQS
  1. What's the difference between housing starts and building permits?

    Both housing starts and building permits are economic indicators used to assess the health of the housing market, but their ... Read Answer >>
  2. What's the difference between a market order and a limit order?

    Buy and sell trades with market orders at the present stock price and execute limit orders if the stock price falls within ... Read Answer >>
  3. Can a business charge me an extra fee for paying with my credit card instead of cash?

    Learn about credit card surcharges by retailers, in which states this practice is permitted and the judicial decision that ... Read Answer >>
  4. Why do limit orders cost more than market orders?

    Learn the difference between a market order and a limit order, and why a trader placing a limit order pays higher fees than ... Read Answer >>
  5. How do financial advisors execute trades?

    Understand how financial advisors normally execute an investor's trades. Learn about the different type of markets and exchanges ... Read Answer >>
  6. How do I place an order to buy or sell shares?

    Read a brief overview of how to open a brokerage account, how to buy and sell stock, and the different kinds of trade orders ... Read Answer >>
Hot Definitions
  1. Physical Capital

    Physical capital is one of the three main factors of production in economic theory. It consists of manmade goods that assist ...
  2. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  3. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  4. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  5. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  6. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
Trading Center