Broker-Reseller

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DEFINITION of 'Broker-Reseller'

A type of broker that acts as an intermediary between large brokerages and their clients. Broker-resellers typically take stock orders from clients and then use major brokerages to execute the trades.

INVESTOPEDIA EXPLAINS 'Broker-Reseller'

While all major brokerages belong to reputable governing organizations, such as the National Association of Securities Dealers and similar bodies, not all broker-resellers have taken all the examinations and various other steps to be considered qualified as standard brokers. Therefore, an investor should be sure to perform the necessary due diligence on a reseller before any money changes hands.

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