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A broker is an individual or company that places trades on behalf of a trader. They can do so in a number of different asset classes, with the most well-known being stockbroking.
Broker definition
A broker is an individual or company that places trades on behalf of a trader. They can do so in a number of different asset classes, with the most well-known being stockbroking.
Types of broker
If your broker operates in an execution-only capacity, it means that they only act as a platform to allow trades on an exchange or over the counter – they do not give investment advice. These brokers charge commission on the trades they place for you. For instance, IG offers an execution-only service.
Alternatively, brokers can offer an advisory service. This is where a broker offers advice on what to invest in, as well as executing the trades. They will only execute trades on your behalf once you have given the go-ahead.
Finally, discretionary brokers trade fully on your behalf, making trades without consulting you. This allows them to make trades much faster. Both advisory and discretionary brokers will charge fees for advising on or managing your shares for you.
Read more about share dealing
The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA, a SIPP or an IG Smart Portfolio can fall as well as rise, which could mean getting back less than you originally put in. Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. Spread betting and CFD trading are not permitted within the IG SIPP. Please ensure you fully understand the risks and take care to manage your exposure.
iShares® and BlackRock® are registered trademarks of BlackRock, Inc. and its affiliates (“BlackRock”) and are used under license. Further, BlackRock, Inc. and its affiliates including, but not limited to, BlackRock Investment Management (UK) Limited, are not affiliated with IG Markets Limited and its affiliates. Accordingly, BlackRock makes no representations or warranties regarding the advisability of investing in any product or service offered by IG Markets Limited or any of its affiliates. BlackRock has no obligation or liability in connection with the operation, marketing, trading or sale of any product or service offered by IG Markets Limited or any of its affiliates.
