Inter-Dealer Broker

DEFINITION of 'Inter-Dealer Broker'

1. A brokerage firm operating in the bond or OTC derivatives market that acts as an intermediary between major dealers to facilitate inter-dealer trades.

2. A member of the London Stock Exchange who is only permitted to deal with market makers, rather than the public.

BREAKING DOWN 'Inter-Dealer Broker'

Inter-dealer brokerages operate on very small spreads, but they handle extremely large transactions.

RELATED TERMS
  1. Interdealer Market

    A trading market that is typically only accessible by banks and ...
  2. OTC Markets Group Inc.

    The owner and operator of the leading U.S. inter-dealer electronic ...
  3. SEC Form 10-C

    A form filed with the Securities and Exchange Commission (SEC) ...
  4. Brokerage Company

    A business whose main responsibility is to be an intermediary ...
  5. Third Market Maker

    A third-party securities dealer that is ready and willing to ...
  6. Market Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
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

    Understanding Brokerage Fees

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

    What Does a Dealer Do?

    Dealers possess certain qualities that distinguish them from brokers and traders.
  4. Financial Advisor

    What Is A “Broker-Dealer” And Why Should You Care?

    For many investors, the financial services industry is a strange and mysterious place filled with a language all in its own. Terms like “alpha,” “beta” and “Sharpe-Ratio” ...
  5. Investing

    Electronic Trading: The Role of a Market Maker

    Market makers compete for customer order flows by displaying buy and sell quotations for a guaranteed number of shares. The difference between the price at which a market maker is willing to ...
  6. Investing

    Penny Stocks: 3 Tips to Trade Over-the-Counter Stocks

    Discover some valuable tips to make investing in over the counter penny stocks more likely to be a profitable investment endeavor.
  7. Markets

    Stocks Basics: How Stocks Trade

    Most stocks are traded on exchanges, which are places where buyers and sellers meet and decide on a price. Some exchanges are physical locations where transactions are carried out on a trading ...
  8. Trading

    How To Pay Your Forex Broker

    Three types of commissions are used in this market. Learn how to get the best deal.
  9. Investing

    What Are Transaction Costs?

    Transaction costs are expenses incurred from buying or selling securities.
  10. Financial Advisor

    How Brokers Are Compensated for Selling Bonds

    Find out how brokers are paid for selling bonds and how the transaction costs are passed on to the investor through a markup or commission.
RELATED FAQS
  1. Where do I go to make an OTC (over-the-counter) transaction?

    Learn about the over-the-counter, or OTC, market and how to purchase its stocks. These stocks are often risky, but some offer ... Read Answer >>
  2. How do I buy an over-the-counter stock?

    The process of purchasing over-the-counter (OTC) stocks is different than purchasing stock from companies on the NYSE and ... Read Answer >>
  3. Does all common stock trade on exchanges?

    Find out about types of common stock that trade on stock exchanges and types that trade in varied over-the-counter (OTC) ... Read Answer >>
  4. 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 >>
  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. 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 >>
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