definition of brokerage account
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What is a 'Brokerage Account' What is a 'Brokerage Account'. A brokerage account is an arrangement between an investor and a licensed brokerage firm that allows the investor to deposit funds with the firm and place investment orders through the brokerage.
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- DEFINITION of 'Inter-Dealer Broker' 1. A brokerage firm operating in the bond or OTC derivatives market that acts as an intermediary between major dealers to facilitate inter-dealer trades. 2. A member of the London Stock Exchange who is only permitted to deal with market makers, rather than the public.
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What is a 'Brokerage Account' Brokerage Account. What is a 'Brokerage Account'. A brokerage account is an arrangement between an investor and a licensed brokerage firm that allows the investor to deposit funds with the firm and place investment orders through the brokerage.
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money market deposit account A type of savings account in which the bank or brokerage firm invests funds held on deposit in short-term debt obligations.
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- BREAKING DOWN 'Broker-Dealer'. Broker-dealers fulfill several important functions in the financial industry; these include providing investment advice to customers, supplying liquidity through market-making activities, facilitating trading activities, publishing investment research and raising capital for companies.EFINITION of 'Broker-Dealer'. A person or firm in the business of buying and selling securities, operating as both a broker and a dealer, depending on the transaction.
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brokerage broker - a businessman who buys or sells for another in exchange for a commission agent, factor brokerage, brokerage firm, securities firm - a stock broker's business; charges a fee to act as intermediary between buyer and seller
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Broker-dealer Broker-dealers are at the heart of the securities and derivatives trading process.Although many broker-dealers are independent firms solely involved in broker-dealer services, many others are business units or subsidiaries of commercial banks, investment banks or investment companies.When executing trade orders on behalf of a customer, the institution is said to be acting as a broker.hen executing trades for its own account, the institution is said to be acting as a dealer. Securities bought from clients or other firms in the capacity of dealer may be sold to clients or other firms acting again in the capacity of dealer, or they may become a part of the firm's holdings.
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Broker In general, a broker is an independent agent used extensively in some industries. A broker's prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller. An example would be a real estate broker who facilitates the sale of a property.
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- Definitions of brokerage account. 1. “you can't get a brokerage account unless you have $20,000”. an account with a securities brokerage whose transactions are settled on a cash basis. an account with a securities brokerage in which the broker extends credit.
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What is a 'Separate Account' What is a 'Separate Account'. A separate account is a privately managed investment account opened through a brokerage or financial advisor that uses pooled money to buy individual assets. 2. In the context of variable annuities, these are payments made to an insurance company for the purpose of investing in securities.
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The Most Expensive Brokerage Accounts For Traders However, one thing common to all these products is the need of a brokerage account to be able to invest and manage investments directly. These accounts facilitate the buying and selling of stocks, ETFs, mutual funds, among other products, along with offering a wide range of services that vary from broker to broker.
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Purpose of a Brokerage Firm piggy bank with money 2 image by Melking from Fotolia.com. A broker acts as a middleman in a financial transaction, between a buyer and seller of securities, such as stocks and bonds. A brokerage firm consists of a number of brokers, working together in the same company to service a larger pool of financial clients.
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Brokerage firm Brokerage firm. A brokerage firm, or simply brokerage, is a financial institution that facilitates the buying and selling of financial securities between a buyer and a seller. Brokerage firms serve a clientele of investors who trade public stocks and other securities, usually through the firm's agent stockbrokers. A traditional, or full service, brokerage firm usually undertakes more than simply carrying out a stock or bond trade.
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Discretionary account Discretionary Account. A brokerage account in which a broker is able to make decisions without the need to consult others. For example, a discretionary account gives a broker the right to make significant investment decisions without permission from or even consultation with the account's owner. brokerage account in which a broker is able to make decisions without the need to consult others. For example, a discretionary account gives a broker the right to make significant investment decisions without permission from or even consultation with the account's owner.
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- What is a 'Wrap Account' A wrap account is used by a brokerage firm to manage an investor's portfolio for an annual fee, which is based on total assets under management (AUM). This fee covers all of the administrative, commission and management expenses for the account.
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- Understanding Your Brokerage Account Statements 7 Accrued Interest The estimated amount of interest that would be received upon a sale. Inmost cases, it is calculated from the date of the last coupon payment upthrough the closing date of the account statement.
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- A standard brokerage account for up to three people. This general investing account may be used to self-manage a diversified portfolio. This account is eligible for margin borrowing, options trading and Money Direct ® instant funding. Some services are subject to approval.
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broker Definition of broker: Person who serves as a trusted agent or intermediary in commercial negotiations or transactions. Brokers are usually licensed professionals in fields where specialized knowledge is required, such as ...
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What Is a Brokerage Account? What Is the Difference Between a Cash Brokerage Account and a Margin Brokerage Account. When you open a brokerage account, you have to pick between a so-called cash and margin account type. A cash brokerage account is one that requires you to deposit cash and securities, in full, by settlement, in order to engage in transactions.
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What is a 'Broker' DEFINITION of 'Broker'. 1. An individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. 2. The role of a firm when it acts as an agent for a customer and charges the customer a commission for its services. 3. A licensed real estate professional who typically represents the seller of a property.
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What Is a Brokerage Account? What Is the Difference Between a Cash Brokerage Account and a Margin Brokerage Account When you open a brokerage account, you have to pick between a so-called cash and margin account type. A cash brokerage account is one that requires you to deposit cash and securities, in full, by settlement, in order to engage in transactions. The brokerage firm won't lend you any money.
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Broker A broker is an independent party, whose services are used extensively in some industries. A broker's prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller. An example would be a real estate broker who facilitates the sale of a property.
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What is a margin account? A margin account is an account offered by brokerages that allows investors to borrow money to buy securities.An investor might put down 50% of the value of a purchase and borrow the rest from the broker. The broker charges the investor interest for the right to borrow money and uses the securities as collateral.y Investopedia Staff AAA |. A: A margin account is an account offered by brokerages that allows investors to borrow money to buy securities. An investor might put down 50% of the value of a purchase and borrow the rest from the broker.
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- A broker acts as a middleman in a financial transaction, between a buyer and seller of securities, such as stocks and bonds. A brokerage firm consists of a number of brokers, working together in the same company to service a larger pool of financial clients.
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Broker Definition [edit]. In general, a broker is an independent agent used extensively in some industries. A broker's prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller.An example would be a real estate broker who facilitates the sale of a property.n general, a broker is an independent agent used extensively in some industries. A broker's prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller.
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broker Related Terms. Person who serves as a trusted agent or intermediary in commercial negotiations or transactions. Brokers are usually licensed professionals in fields where specialized knowledge is required, such as finance, insurance, and real estate. Their rate of compensation (called brokerage or commission) is determined according to custom of the particular trade or by law, and is computed commonly either as a fixed percentage of the value of the transaction or on a sliding scale (higher the value, lower the percentage).