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Floor Broker - FB

 
Investment Dictionary: Floor Broker - FB

An employee of a member firm who executes trades on the exchange floor on behalf of the firm's clients.

Investopedia Says:
Basically floor brokers receive orders from their firms, which have been placed by the firms' clients, and executes these orders at the best possible price. Floor brokers should not be confused with floor traders who execute orders for their own accounts.

Related Links:
How do you find the right broker for your investment needs? Start by reading our broker tutorial. Brokers and Online Trading
Find out the various ways in which a broker can fill an order, which can affect costs. Understanding Order Execution
The way trading is conducted is changing rapidly as exchanges turn toward automation. The Global Electronic Stock Market


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Member of an exchange who is an employee of a member firm and executes orders, as agent, on the floor of the exchange for clients. The floor broker receives an order via teletype machine from his firm's trading department, then proceeds to the appropriate trading post on the exchange floor. There he joins other brokers and the specialist in the security being bought or sold, and executes the trade at the best competitive price available. On completion of the transaction, the customer is notified through his registered representative back at the firm, and the trade is printed on the consolidated ticker tape, which is displayed electronically around the country. A floor broker should not be confused with a Floor Trader who trades as a principal for his or her own account, rather than as a broker.

 
 

 

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Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.  Read more
Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more