DEFINITION of 'Deposit Broker'
An individual or firm that facilitates the placement of investors' deposits with insured depository institutions. Deposit brokers offer investors an assortment of fixed-term investment products, which earn low-risk returns.
BREAKING DOWN 'Deposit Broker'
Deposit brokers sell financial instruments such as guaranteed investment certificates, term deposits, government bonds and certificates of deposit. They are similar to stock brokers, but offer alternatives to investing only in equity. While stock brokers must pass the Series 7 to sell securities, deposit brokers may not need regulatory approval to sell fixed-term securities.