Broker Dealer
ISIN can assist with your broker dealer (BD) or Lead Manager needs.
A Broker Dealer, or broker-dealer, is a term used in United States financial services regulations. It is a natural person, a company or other organization that trades securities for its own account or on behalf of its customers.
Although many broker-dealers are “independent” firms solely involved in broker-dealer services, many others are business units or subsidiaries of commercial banks, investment banks or investment companies.
When executing trade orders on behalf of a customer, the institution is said to be acting as a broker. When executing trades for its own account, the institution is said to be acting as a “dealer.” Securities bought from clients or other firms in the capacity of dealer may be sold to clients or other firms acting again in the capacity of dealer, or they may become a part of the firm’s holdings.
Main points of activity
- Professional participant in securities market who carries out dealer activity shall be called dealer.
- Announcing the price, the dealer is committed to announce other essential conditions of the buy-sell contract of securities: minimum and maximum number of securities subject to purchase and/or sale, as well as the term of announced prices validity.
Functions
- All the functions of broker including financial consulting
- Organization and support of turnover (liquidity), or so-called market-making (price announcing, duty of sell and buy of security at announced price, announcing of min and max number of securities that can be bought/sold at announced price, implementing time periods when announced prices are available)
A brokerage firm, or simply brokerage, is a financial institution that facilitates the buying and selling of financial derivatives between a buyer and a seller. Brokerage firms serve a clientele of investors who trade public stocks and other securities.
A discount broker is a firm that charges a relatively small commission by having its clients perform trades via automated, computerized trading systems rather than by having an actual broker assist with the trade. Most traditional brokerage firms offer discount options and compete heavily for client volume due to a shift towards this method of trading.
Other ways to lower costs for these brokers is by executing orders only a few times a day by aggregating orders from a large number of small investors into one or more block trades which are made at certain specific times during the day. They help lower costs in two ways:
- By matching buy and sell orders within the firm’s order book the overall quantity of stock to be traded can be reduced thus reducing commissions.
- The broker can split the bid-ask spread with the investor when matching buy and sell orders – a win-win situation in most cases
Since investor money is pooled before stocks are bought or sold, it enables investors to contribute small amounts of cash using which fractional shares of specific stocks can be purchased. This is usually not possible with a regular stock broker.
ISIN.net may be able to help you find a broker dealer suitable for the selling of your securities.