Brokers
Brokers
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Choosing the right brokerage account can be daunting but the best trading platforms have a lot of tools to help new investors learn about investing and trading to begin your investing journey. Clear and concise content on trading platforms and mobile apps are some key features to consider. The best platforms also have a good mix of beginner and experienced trading instructions, low fees and account minimums, customized portfolio management tools and strong educational content and investing calendars, along with multiple ways to reach customer service.
Learn More: Best Trading Platforms for Beginners -
A trailing commission is simply a fee that you pay a financial advisor each year that you own an investment, which gives the advisor a financial incentive to do a thorough review of an investor's portfolio and provide guidance.
Learn More: What Is a Trailing Commission? -
Soft commissions are ways that customers of financial firms can pay for their services through commission revenue instead of vial direct payment. Soft commissions are also known as soft dollars, and the practice can be seen as unethical or unfair. One example would be a mutual fund receiving research and advising services in return for sending order flow through a brokerage desk.
Learn More: What Are Soft Commissions? -
Losing money on one’s investment can often lead to lots of blame to go around, and one may be tempted to sue a broker or other parties that may have been involved in some investment decisions. While suing for damages for bad investments or mismanagement of funds may be an option, the decision to file a lawsuit can be a long and costly process.
Learn More: Do You Dare Sue Your Broker? -
Financial advisors build financial plans for their clients, including goals for investments, budget, insurance, and savings, and for that service advisors are reimbursed by mutual funds for those advisory services. Advisors can advise their clients toward certain investments and may execute trades in the financial markets by proxy for their clients.
Advisors who are also brokers get paid commissions by a mutual fund.
Learn More: Do Financial Advisors Get Paid by Mutual Funds? -
A cross is a financial term that can have several meanings. The most common reference of a cross is when a broker executes a transaction on a trading floor or exchange. In foreign exchange markets, a cross trade involves two non-U.S. dollar currency exchange transactions. In technical analysis, golden crosses and death crosses are commonly identified chart patterns that may occur.
Learn More: What Is a Cross?
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Order Management System (OMS)
An order management system (OMS) is a software system that facilitates and manages the execution of trade orders in an efficient and cost-effective way. Brokers and dealers use an OMS when filling orders for various types of securities.
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Brokerage Fee
A brokerage fee is a fee a broker charges to execute transactions or provide services for clients. Brokerage fees are based on a percentage of the transaction, as a flat fee, or as a hybrid of the two, and vary according to the industry and type of broker.
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Brokerage Company
A brokerage company basically acts as a middleman, connecting buyers and sellers to facilitate a transaction. Full-service brokerage companies make money by charging a flat annual fee or fees per transaction.
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Front-Running
Front-running is an illegal and unethical trading activity where a trader acts on inside information. A broker who engages in front-running is trading stock or any other financial asset by inside knowledge of a future transaction that has not been disclosed publicly.
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Threshold List
A threshold list is a list of securities that failed to settle in the previous five trading days, and they are published by stock exchanges in accordance with SEC regulations.
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Liquidation Margin
A liquidation margin is the current value of a margin account based on its cash deposits and the most recent market value of its open positions.
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COMEX
COMEX is the world's largest futures and options trading for metals, and it is an abbreviation for its full name, the Commodity Exchange Inc.
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