Broker

A broker is the go-between that lets individual investors access the stock market. You open a brokerage account, deposit money, and then place orders through the broker's website or app. The broker sends your orders to an exchange or another trading venue and holds the shares in your account afterward.

There are different kinds of brokers. Full-service brokers offer advice, research and financial planning, usually for higher fees. Discount and online brokers mainly execute trades and provide tools, often with low or zero commissions on stock trades. Some brokers earn money from payment for order flow, interest on cash balances or margin lending instead of commissions.

In the US, broker-dealers must register with the SEC and be members of FINRA, the industry's self-regulatory organization. Customer accounts are typically protected by SIPC up to certain limits if the broker fails, although that protection does not cover losses from falling prices.

When choosing a broker, investors usually compare fees, available investments, order types, research tools, account types and customer service.