Agency broker
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An agency broker is a broker that acts as an agent to its clients, placing trades on their behalf. When acting as the agent, the agency broker must look after its clients' best interests, including attempting to fill client orders at the lowest price and in the fastest way possible. This is in contrast with broker-dealers, who purchase orders from clients and then sell them as blocks in the market. An agency broker acts as a middle man to the stock exchange.[1]
Clients of agency brokers are often institutional funds that place large block orders.[2]
References[edit]
- ↑ Agency Broker. Investopedia.
- ↑ Agency Broker definition. Answers.com.