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 that routes your order and settles the trade.
Because the broker is the institution literally holding your money and assets, choosing a well-regulated one matters more than any feature or fee. A broker overseen by a strong regulator operates under rules, audits, and usually an investor-protection scheme that safeguards your assets if the firm fails. The cheapest or flashiest app is a poor bargain if it isn't a properly regulated custodian of your savings.
A broker executes your orders and holds your assets — you can't trade an exchange directly. Because it holds your money, its regulation matters more than any fee or feature.
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.
Learn it by doing
That's Broker in theory — it clicks when you use it. Practise it hands-on in a free, interactive lesson (Stage 7, Brokers, Accounts & Getting Started).
Try the free lesson →Why it matters to you
The broker matters because it's the custodian of your money — the single institution standing between you and your savings. That makes regulation and reputation the first thing to check, ahead of fees or interface. A well-regulated broker means rules, oversight, and usually a protection scheme back your account; an unregulated one can mean your assets vanish with no recourse. Where you hold your money is a bigger decision than what you buy.
⚠ Choosing on features over regulation
It's tempting to pick a broker for its slick app, zero commissions, or a sign-up bonus. But the broker holds your money, so its regulation and financial soundness matter far more than any perk. An unregulated or offshore platform can be cheap right up until it freezes withdrawals or disappears. Check the regulator first, features second.