Member

AAA

DEFINITION of 'Member'

1. In the most general context, a brokerage firm (or broker) holding membership on an organized stock or commodities exchange. Membership is generally required in order to fill trades for clients on the exchange.

2. For the New York Stock Exchange, one of more than 1,300 individuals or firms owning a seat on the exchange.

3. For the National Association of Securities Dealers (NASD), any broker-dealer admitted to membership in the association.

INVESTOPEDIA EXPLAINS 'Member'

Brokerages must have a "member seat" on the NYSE to trade stocks for their clients. The larger firms have several seats on the exchange. Seats cost more than $1 million each!

RELATED TERMS
  1. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  2. Allied Member

    A person who is not a member of the New York Stock Exchange (NYSE) ...
  3. National Association Of Securities ...

    The NASD was a self-regulatory organization of the securities ...
  4. Member Firm

    A broker-dealer in which at least one of the principal officers ...
  5. New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered ...
  6. Execution Only

    A trading service that is restricted to execution of trades only, ...
RELATED FAQS
  1. What does membership in the New York Stock Exchange entail, and why is it known as ...

    Owning a seat on the New York Stock Exchange (NYSE) enables a person to trade on the floor of the exchange, either as an ... Read Full Answer >>
  2. What's the difference between a Nasdaq market maker and a NYSE specialist?

    What's the main difference between a specialist and a market maker? Not much. Both the New York Stock Exchange (NYSE) specialist ... Read Full Answer >>
  3. I decided not to take the Series 63 exam. Can I get a refund?

    You cannot get a refund if you simply decided not to take the Series 63 exam. Reimbursement of exam fees is only approved ... Read Full Answer >>
  4. When do stock market exchanges close?

    Closing times for stock market exchanges vary, but they generally close in the evening except on holidays. A stock market ... Read Full Answer >>
  5. How are investment banks regulated in the United States?

    Investment banks in the United States are continuously reviewed and regulated by the Securities and Exchange Commission, ... Read Full Answer >>
  6. What are the best technical indicators to complement the Haurlan Index?

    The Haurlan index is a market breadth indicator used primarily to identify overbought and oversold conditions. Like most ... Read Full Answer >>
Related Articles
  1. Options & Futures

    Brokers and Online Trading

    How do you find the right broker for your investment needs? Start by reading our broker tutorial.
  2. Trading Strategies

    Brokerage Review: How Useful Is TradeStation?

    TradeStation uses its experience in developing early groundbreaking trading software to create and enhance its own online trading platform.
  3. Trading Strategies

    Motif Investing Broker Review: Easy Thematic Investing

    A review of Motif Investing, a new online brokerage that brings thematic investing to individual investors and financial advisers for a flat fee.
  4. Trading Systems & Software

    Robinhood And Scottrade: What's The Big Difference?

    Technology and competition has made trading possible for anybody with an internet connection. You can make a trade for just a few dollars or less.
  5. Investing News

    Folio Investing Brings Experience To Robo-Advisors

    Prior to the recent upsurge of robo advisors, Folio Investing established itself as an alternative investment service through its online service.
  6. Trading Strategies

    The Best Low-Cost, Web-Based Trading Brokers

    With this table, investors can differentiate between top low-cost, web-based trading brokers by price, capabilities, and offerings.
  7. Trading Systems & Software

    How Will Robinhood Stay Afloat with $0 Trades?

    The online brokerage space just got more crowded with the launch of the Robinhood app for iOS. Robinhood aims to spur millennial investing with $0 trades.
  8. Trading Strategies

    Risk Management Techniques For Shorting Call Options

    Shorting covered calls is a popular options trade strategy. Here are the methods to mitigate the risk/loss and enhance profits for selling covered calls
  9. Options & Futures

    These Are The Top Brokerage Firms For Options Trading

    Trading options? Here is the list of the best brokerage firms for options trading, with features, functionality, and brokerage rates.
  10. Brokers

    Do You Know How To Beat Your Broker?

    Want more returns? Give less of it to your broker! Keep your costs down, starting with broker costs.

You May Also Like

Hot Definitions
  1. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  2. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  3. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  4. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
  5. Tangible Net Worth

    A measure of the physical worth of a company, which does not include any value derived from intangible assets such as copyrights, ...
  6. Marginal Utility

    The additional satisfaction a consumer gains from consuming one more unit of a good or service. Marginal utility is an important ...
Trading Center