An individual or firm (brokerage) that that transacts in securities – stocks, bonds, mutual fund shares, exchange-traded fund (ETF) shares, and certain other investment products – on behalf of its customers (as broker), for its own account (as dealer), or both (broker-dealer).
A broker accepts and executes orders to buy and sell securities and other types of tradable assets. Brokers may also provide advice and recommendations to buy, sell or hold a specific security, and how to implement investment strategies (including account management), etc.
Brokers typically provide investment services on a transactional basis, in which a client pays a fee known as a commission or markup every time a trade to buy or sell is placed and executed.
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