Broker
Market Structure
What it means
The company that holds your account, takes your orders, and routes them to exchanges. You trade through a broker, not directly with other traders.
Example
You open an account with a broker like Interactive Brokers, deposit $5,000, and place orders through their platform. They route each order to an exchange and report fills back to you.
Mistake beginners make
Beginners pick a broker based on ads, then discover slow execution, wide spreads, or withdrawal issues. Always check regulation, fees, and execution quality before depositing.
Related terms
- Exchange — A marketplace where buyers and sellers meet to trade assets under shared rules. The NYSE a…
- Market Maker — A firm that quotes both buy and sell prices and stands ready to trade on either side, earn…
- ECN — Electronic Communication Network: a system that matches buy and sell orders directly betwe…