Two Dollar Broker

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DEFINITION of 'Two Dollar Broker'

A floor broker who executes orders for other brokers who cannot do it themselves because they have more business than they can handle at that particular time.

BREAKING DOWN 'Two Dollar Broker'

The name came about because brokers were once paid $2.00 for a round lot trade. Today, commission is negotiated.

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RELATED FAQS
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    Interest rates on margin accounts vary according to the size of the loan and the brokerage firm being used. Generally, interest ... Read Full Answer >>
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    When investors purchase shares of stock, the price paid includes two components: the price of the stock and the fee charged ... Read Full Answer >>
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    The difference between a fee-based adviser and a commission-based adviser is that the former collects a flat fee for investment ... Read Full Answer >>
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    Custodian banks and mutual fund custodians, commonly known as mutual fund corporations, perform very similar roles for different ... Read Full Answer >>
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