Broker
Also called: brokerage, stockbroker
A broker is a licensed firm that places trades on an exchange for you and holds your investments in an account, like Fidelity, Schwab or Robinhood.
Most US brokers now charge no commission to buy or sell stock. They still pass on small regulatory fees on sales and earn money from interest, margin lending and routing orders.
In Journey Shares
The game works like a zero-commission broker: no fee to trade, but every sale pays the real SEC and FINRA fees. →
Related terms
- Commission: A commission is a fee a broker charges for placing a trade.
- Margin: Buying on margin means borrowing money from your broker to buy more stock than your cash alone allows, using your investments as collateral.
- Stock exchange: A stock exchange is a regulated marketplace where buyers and sellers trade shares, such as the New York Stock Exchange (NYSE) or Nasdaq.
Practise with $10,000 in play money
Free. No real money involved.
For learning only. This isn't financial advice.