A broker-dealer firm is a key entity in the financial markets, fulfilling two primary roles. As a "broker," it acts as an agent, executing buy and sell orders on behalf of its clients. As a "dealer," it acts as a principal, trading securities for its own account. These firms range in size from small independent boutiques to large multinational investment banks. They are highly regulated, in the United States primarily by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), to ensure market integrity and protect investors. Their services can include retail brokerage, investment banking, market making, and wealth management.

Founded in

United States