A broker is an individual or firm that acts
as an intermediary between buyers and sellers of financial securities.
Brokers are typically licensed and regulated by securities regulators
and exchanges to facilitate transactions in stocks, bonds, mutual
funds, and other securities.
When you want to buy or sell a security, you typically place an order with a broker, who then executes the trade on your behalf. Brokers earn a commission or fee for their services, which can be a fixed amount or a percentage of the value of the trade.
There are different types of brokers, including full-service brokers and discount brokers. Full-service brokers typically offer a wide range of services, including investment advice, research reports, and financial planning, in addition to executing trades. Discount brokers, on the other hand, offer more limited services and charge lower fees.
Brokers can also specialize in certain types of securities or markets. For example, some brokers may specialize in trading options or futures contracts, while others may focus on specific geographic regions or industries.
Overall, a broker is an essential intermediary for anyone who wants to trade securities. They help investors execute trades, provide market insights and advice, and help ensure that trades are executed in a fair and transparent manner.
These are just a few examples of the many brokerage firms that operate in the United States. It's important to do your research and compare fees, services, and account minimums before choosing a broker that's right for you.