What is a broker-dealer?
A broker-dealer is a financial firm that trades securities either for its own account or on behalf of other firms. If a broker-dealer firm is trading securities on behalf of a customer account, it is acting as an agent or a broker whereas if the broker-deal firm is trading securities on behalf of its own account, it is acting as a principal or a dealer.
Most brokers and dealers must register with the SEC unless they transact all of their business within one state, in which case they are required to have a state registration. Those broker-dealers that advise or offer fee-based accounts generally must also register as an investment advisor.
Find a Registered Broker-Dealer
Search the www.brokerdealerfirms.com directory:
- Search broker-dealers by state
- Search broker-dealers by assets under management
- Search broker-dealers by number of broker-dealer reps