An intermediary that facilitates the buying and selling of financial instruments, connecting retail or institutional traders with the broader market. Brokers can operate as individuals or platforms and typically provide tools like trading terminals, leverage, market insights, and order execution services. In return, they charge fees in the form of spreads, commissions, or both. Choosing a regulated and reputable broker ensures security of funds, fair pricing, and proper support. Traders should evaluate broker offerings based on factors like platform reliability, asset variety, support services, and compliance with financial regulations.
Example:
An individual investor places stock trades through a brokerage firm that executes transactions on their behalf in the market.
