Glossary entry
A broker acts as an intermediary in transactions, receiving or executing instructions for clients. Services may include order routing, custody arrangements, research, or advice, depending on authorization and the agreement. A firm can also act as a dealer using its own account, so the capacity in which it handles a transaction matters.
Illustrative example
An investor submits a share order through a broker, which routes it to a trading venue and provides a confirmation after the order executes.
What to consider
Verify the firm's legal entity, registration, fee schedule, and asset-holding arrangements. A recognizable brand alone does not establish the relevant protections.
General information, not a personal recommendation. Product availability, rights, and obligations are determined by the relevant provider, jurisdiction, and approved agreements.