An individual or firm (brokerage) that that transacts in securities – stocks, bonds, mutual fund shares, exchange-traded fund (ETF) shares, and certain other investment products – on behalf of its customers (as broker), for its own account (as dealer), or both (broker-dealer).

A broker accepts and executes orders to buy and sell securities and other types of tradable assets. Brokers may also provide advice and recommendations to buy, sell or hold a specific security, and how to implement investment strategies (including account management), etc.

Brokers typically provide investment services on a transactional basis, in which a client pays a fee known as a commission or markup every time a trade to buy or sell is placed and executed.