broker

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A person or entity that arranges contracts and acts as an intermediary between a buyer and seller for a commission. A broker is an independent party to a transaction and should not be confused with an agent who acts on behalf of a principal party in a deal. There are many types of brokers in many industries for example broker-dealer for trading securities, customs broker, real estate broker, insurance broker, mortgage broker etc.

Brokers in many fields are regulated and licensed by each state and have a fiduciary duty to act in the best interests of their customers or clients. Brokerage firms are also generally subject to regulations based on the type of brokerage and jurisdiction.

[Last updated in May of 2020 by the Wex Definitions Team]