Why Should You Care About Broker or Dealer?

Broker News 2019- Before composing who to use for help with your investing, learn what brokers, dealers, and broker-dealers are and what services they providing.


Forex Broker- TopAsiaFX

Today I’m going to show you a VERY effective BROKER strategy for 2019.

In fact, I recently used these to better understand “why should we care about BROKER”. Now let’s go…

For many investors, the financial services industry is a strange and mysterious place filled with its own language. Terms such as alpha, beta, and Sharpe ratios do not precisely roll the tongue, nor are they used by industry insiders to lift hoods and make things less blurry.

Of course, the language fits the medium, because the arena of financial services is a complex world. To participate in the world, investors generally use broker or dealer services in several forms or modes, making reviews of these terms an attractive place to start exploring.


Brokers and dealers are U.S. regulatory requirements. and, as is often the case with legal requirements, they are not very intuitive for many people. While words are often seen together, they actually represent two different entities.

A broker executes an order on behalf of a client. For regulators, this means the entity through which the investor has a brokerage account.

  • How can investors actually use this?

For investors, it generally means people who help them buy and sell securities. A little confusion occurs here because the industry also has many requirements for someone who helps investors buy and sell securities, including financial advisors, investment advisors, and registered representatives.

For now, we will stick with a strict legal definition to provide a basis for further exploration. Think of a legal entity that facilitates security trade as an agent acting on behalf of investors.

When you want to buy or sell securities, the entity (in the case of an online brokerage account for example) who helps you make the transaction is your agent.

When you pay a commission for trading, you make a payment to the agent. Term agents and brokers can be used interchangeably.


Putting Everything Together

Most companies recognized by investors act as brokers and dealers and are therefore referred to as broker-dealers by industry regulators.

These companies include major brokers and other traditional Wall Street organizations, as well as large commercial banks, investment banks, and even independent small boutique companies that serve the well-off.

Brokers play an important role in the financial market because these companies provide the infrastructure that facilitates stock trading. In fact, if you want to buy shares, you must open a brokerage account through a brokerage company.

  • The best part?

Brokerage companies make sure you have well money in your account to trade, simplify trade by interacting with the stock exchange where shares are traded, provide a computer system that enforces trading and keeps trade records.

It also manages financial transactions between buyers and sellers and facilitates future transactions (dividends, stock splits, corporate actions such as those that occur when securities are favorably called or stock splits occur).

Now the time is yours. I’d like to hear from you…

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