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Whats a broker?
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1st Nov 2009 by Joseph Pousada
A broker is a person or organization who will act to bring a buyer and a seller together for a fee (the fee is usually called a commission.) It is prudent to know that most places today will disclose to you that they are broker/dealers which means they can find another buyer or seller to complete your trade in the market or that they may decide to complete your trade by buying or selling for their own account. If a trade is processed for the house account of the broker/dealer they have acted on a principal basis. If the trade is process with another buyer / seller it is said to have been done on an agency basis. Some broker/dealers have the capability of manually entering trades specifying that it be done on an agency basis.
A broker is a person or organization who will act to bring a buyer and a seller together for a fee (the fee is usually called a commission.) It is prudent to know that most places today will disclose to you that they are broker/dealers which means they can find another buyer or seller to complete your trade in the market or that they may decide to complete your trade by buying or selling for their own account. If a trade is processed for the house account of the broker/dealer they have acted on a principal basis. If the trade is process with another buyer / seller it is said to have been done on an agency basis. Some broker/dealers have the capability of manually entering trades specifying that it be done on an agency basis.
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26th Oct 2009 In Brokerage
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Subjects: broker,