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8 min read•Last updated: January 2025

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What is a Broker?

Your Gateway to MarketsLicensed intermediary that executes your trades
A broker is a licensed financial intermediary that facilitates the buying and selling of securities on behalf of investors. They provide access to stock exchanges and other financial markets that individual investors can’t access directly.
Key FunctionBrokers act as the middleman between you and the stock market. When you place an order to buy Apple stock, your broker routes that order to the appropriate exchange and handles the settlement process.

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How to Choose the Right Broker

Fees & Commissions
• Stock trading commissions
• Options contract fees
• Mutual fund fees
• Account maintenance fees
Platform & Tools
• User interface design
• Mobile app quality
• Research tools
• Charting capabilities
Education & Support
• Educational resources
• Customer service quality
• Webinars and tutorials
• Market analysis
Security & Regulation
• SIPC protection (US)
• Regulatory compliance
• Account security features
• Financial stability
Investment Options
• Stock exchanges access
• International markets
• Options trading
• Mutual funds & ETFs
Account Features
• Minimum deposit requirements
• Margin trading availability
• Fractional shares
• IRA options (US)
Pro TipStart with a small deposit to test the platform’s features and interface before committing larger amounts. Most brokers offer paper trading or demo accounts to practice without real money.