Glossary · Basics

Broker

A licensed intermediary that executes buy and sell orders.

A broker (or brokerage) is the platform or firm that routes your buy and sell orders to the market. Most beginners use an online brokerage app where they open an account, deposit funds, and place orders.

Brokers may charge commissions, spreads, or other fees, and they are responsible for custody of your assets and order execution. Choosing a broker is less about “picking winners” and more about reliability, costs, available markets, and tools that match how you learn and trade.

Example

When you tap “Buy” on 10 shares of a stock in a trading app, the broker sends that order to the exchange or a liquidity venue to be filled.