Difference between trader and broker dealer in stock


In the above, your and yourself are intended to refer to either you personally or your firm. Financial Exam Help I assume this question was posed in relation to soft dollars whereby the Section 28 e of the SEC Act states that soft dollars are legal only for agency trades and not for principal trades.

The question I have about this is, why is there even a question of soft dollars in principal trades? Why is there such a distinction? Why are you not allowed to do whatever you want? Skip to main content. Be prepared with Kaplan Schweser.

Charterholder AF Points. Thanks a lot for your help! Study for Success in Principal is trading for yourself or money for your firm Agency is trading for a client, and you commission off the spread. AndrewUNH Apr 26th, 8: Agency trades always through a broker. Hello All, Thank you for your replies. Now if I get well correct me please: The forms of compensation may be sales loads from investors, or Rule 12b-1 fees or servicing fees paid by the mutual funds. From Wikipedia, the free encyclopedia.

Comparison of online brokerages in the United States. Retrieved 10 October British Columbia Securities Commission. Thomas Smith 6 March Regulation of Investment Companies.

Lexis Nexis Matthew Bender. Retrieved from " https: Brokerage firms Financial services. Views Read Edit View history. This page was last edited on 8 February , at By using this site, you agree to the Terms of Use and Privacy Policy.