Broker-Dealer
A person or firm in the business of buying and selling securities operating as both a broker and dealer depending on the transaction.
Investopedia Commentary
Technically, a broker is only an agent who executes orders on behalf of clients, whereas a dealer acts as a principal and trades for his or her own account. Because most brokerages act as both brokers and principals, the term broker-dealer is commonly used to describe them.
Related Links
Introduction To Fee-Based Brokerage Accounts
Brokers and Online Trading
See also: Agent, Broker, Contra Broker, Dealer, Financial Supermarket, Front Running, Full Service Broker, Market Maker, Principal, SEC, White-Shoe Firm
Also spelled: Broker Dealer, BrokerDealer
broker-dealer