What is a broker market?

Brokered markets include all exchanges where listed instruments are traded, as well as markets for non-listed assets such as real estate. The use of brokers as intermediaries between buyers and sellers aids market efficiency by fostering liquidity, reducing bid-ask spreads and boosting transaction volumes.

What does an investment broker do?

An investment broker is a financial professional that makes investment transactions for a client. These professionals can buy and sell securities, such as stocks, bonds, mutual funds and other investment products on your behalf.

What should investors do if a broker is a market maker?

Investors should thus perform due diligence to make sure that there is a clear separation between a broker and a market maker. Some examples of the bigger market makers in the industry include BNP Paribas, Deutsche Bank, Morgan Stanley, and UBS. Market makers charge a spread on the buy and sell price, and transact on both sides of the market.

What does a stockbroker do?

A stockbroker is a financial professional who executes orders in the market on behalf of clients. A stockbroker may also be known as a registered representative (RR) or an investment advisor . Most stockbrokers work for a brokerage firm and handle transactions for a number of individual and institutional customers.