Two Dollar Broker

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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    There are certain times when a broker must purchase the stock that you are selling. For example, if the broker is a market ... Read Answer >>
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    In almost every instance when you buy or sell securities with a broker, your name is not actually on the stock or bond certificate. ... Read Answer >>
  3. Why do brokers ask for personal information before they make any trades?

    According to the Securities and Exchange Commission (SEC), there are three main reasons why a broker will ask for personal ... Read Answer >>
  4. I want to start buying stocks. Where do I start?

    Before you jump into buying stock, first take the time to learn what type of broker-dealer may be right for you. Read Answer >>
  5. What is Ginzy trading?

    Ginzy trading is an order of different prices placed by a floor broker. It occurs when a floor broker attempts to avoid an ... Read Answer >>
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