Definition
A firm that sends your orders to the market and holds your account.
The story
Stock brokers in the US are overseen by the SEC (Securities and Exchange Commission) and the Financial Industry Regulatory Authority (FINRA); you can look one up on FINRA's BrokerCheck. Futures brokers must register with the Commodity Futures Trading Commission (CFTC) and be members of the National Futures Association (NFA); you can look them up on NFA's BASIC database.
Why markets watch it
Choosing a regulated broker is the starting point for any trading or investing account.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms