What is an ECN broker?

An ECN broker is a broker or firm that uses ECNs to execute client trades. ECN brokers pass order flow directly to the ECN, bypassing traditional market makers, Fink says. In this sense, an ECN broker is a type of middleman, but one who uses an ECN to provide access to other participants in the market, Raju says.

What does a broker do?

A broker is an intermediary who helps perform financial transactions on behalf of a client. This is different than an investor or "first party" buyer, who is making moves for their own direct benefit. The term can apply to a big institution that performs these acts or to individuals who interact directly with customers one-on-one.

What is an online broker?

An online broker is an investing tool that helps people buy and sell stocks, bonds and funds. Unlike traditional brokers, who require face-to-face interactions, online brokers provide online trading platforms to handle all transactions. They feature easy-to-use trading tools, research and analysis, and customer support.

Which brokerage firms offer brokerage services?

Firms like Charles Schwab Corp. ( SCHW ), Robinhood Markets Inc. ( HOOD) and Vanguard Group are all considered brokers (or brokerage houses) at the firm level and offer these services – often without a lot of interaction with end users.