Investing term

What is Broker?

The licensed firm you go through to buy and sell investments on an exchange.

A broker is the licensed firm that connects you to the markets, executing your buy and sell orders and holding your investments in an account. You can't trade most securities directly on an exchange yourself — the broker is the required middleman. Choosing a well-regulated one matters, because it's the institution literally holding your money.

For example

When you tap "buy" in an investing app, the app's broker routes your order to the exchange and settles the trade on your behalf.

Broker is taught hands-on in Stage 7 — Brokers, Accounts & Getting Started.

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Related terms

Account statementThe monthly or quarterly document summarising your account activity, balances, and realized gains.Brokerage accountThe account you open at a broker to hold your investments.CommissionThe per-trade fee some brokers charge to execute an order.Customer supportThe broker's ability to actually help when something goes wrong.
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