Broker
An individual or firm that acts as an intermediary between buyers and sellers in financial markets, executing orders on behalf of clients.
Brokers facilitate transactions and may offer advice, but they do not typically take ownership of the assets themselves. They earn commissions or fees.
Word relationships
- Agent: A more general term for someone acting on behalf of another; 'broker' is specific to financial or commodity markets.
- Intermediary: A general term for someone who acts as a go-between; 'broker' is a specific type of intermediary.
- Principal: The party for whom the broker is acting, or who trades for their own account.
Commonly confused with
- Dealer: A 'broker' executes trades for clients; a 'dealer' buys and sells for their own account.
Word family
- Brokerage (noun): The business of a broker; the fee charged by a broker.
- Brokering (verb): Acting as a broker; arranging a deal.
Collocations
- stock broker
- insurance broker
- discount broker
- online broker
Example sentences
- "I contacted my broker to place an order to buy shares in the new pharmaceutical company." Stock trading
- "A real estate broker helped us navigate the complex process of selling our home." Real estate
- "In the early days of stock markets, brokers physically met on trading floors to execute orders." Historical role
Memory hook
A 'broker' is the 'bridge' between you and the market, helping you buy and sell. Bridge to market
When not to use
Do not confuse a 'broker' with a 'dealer' (who trades for their own account) or an 'advisor' (who primarily offers advice without executing trades).
Fun facts
- The term 'broker' is also used in other contexts, such as 'power broker' for someone who wields significant influence.
Explore more words
negotiate, mediate, barter, negotiation, transaction, vendor
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