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.

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RELATED FAQS
  1. What is the difference between a demand deposit and a term deposit?

    Understand the meaning of demand deposits and term deposits, and learn about the major differences between these two types ... Read Answer >>
  2. What are the Federal Reserve's guidelines on demand deposit accounts?

    Read about some of the Federal Reserve's requirements and guidelines regarding the treatment, safeguarding and processing ... Read Answer >>
  3. For what types of accounts are demand deposits available?

    Learn about the different types of accounts designated as demand deposit accounts, such as savings accounts and money market ... Read Answer >>
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    Discover how an insurance broker makes money. Insurance brokers are important in helping people find the right insurance ... Read Answer >>
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