Broker-Reseller

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.

BREAKING DOWN '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.

RELATED TERMS
  1. Brokerage Account

    An arrangement between an investor and a licensed brokerage firm ...
  2. Firm Order

    1. A market order to buy or sell a security for a brokerage's ...
  3. Commission

    A service charge assessed by a broker or investment advisor in ...
  4. Prime Brokerage

    A special group of services that many brokerages give to special ...
  5. Brokerage Company

    A business whose main responsibility is to be an intermediary ...
  6. Agency Broker

    A broker that acts as an agent to its clients. When acting as ...
Related Articles
  1. Managing Wealth

    What's a Brokerage Account?

    A brokerage account is a contractual arrangement between an investor and a licensed securities broker or brokerage.
  2. Managing Wealth

    Picking Your First Broker

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

    What is a Prime Brokerage?

    A prime brokerage offers special services to certain clients.
  4. Financial Advisor

    Deal Effectively With Difficult Clients

    Learn how to tame the most shrewish clients with these simple methods.
  5. Managing Wealth

    Understanding Brokerage Fees

    Agents charge brokerage fees for facilitating transactions between buyers and sellers.
  6. Professionals

    Tips For Boosting Your Business

    Find out how butter up new clients, build up old files and better your bottom line.
  7. Trading

    10 Tips For Choosing An Online Broker

    This important investment decision happens before you pick your first stock. Find out how to get it right.
  8. Markets

    Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.
  9. Financial Advisor

    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.
  10. ETFs & Mutual Funds

    Bank Failure: Will Your Assets Be Protected?

    The SIPC and FDIC insure against personal financial ruin when banks or brokerages go belly up.
RELATED FAQS
  1. How can an investor profit from the increase in popularity of discount brokerages?

    Find out how investors benefit when brokerages compete with each other, and how discount brokerages are changing the market ... Read Answer >>
  2. Why are most brokerage firms owned by banks?

    Learn about the differences between investing with a bank-owned brokerage firm or with an independent broker. Get real answers ... Read Answer >>
  3. Can you short sell stocks that are trading below $5? My broker says that I can't.

    Short selling can be very risky for both the investor and the broker. Brokers will often tell investors that only stocks ... Read Answer >>
  4. What is the difference between a national and a regional investment brokerage?

    Learn the differences between a national and a regional investment brokerage, and the advantages and disadvantages of doing ... 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. Where can I purchase options?

    In the United States, all options contracts go through one of several options exchanges. An investor must have an account ... Read Answer >>
Hot Definitions
  1. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  2. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  3. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  4. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  5. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
  6. Security

    A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship ...
Trading Center