What is the difference between dealer and broker?

Broker buys/sells securties on his/her clients behalf and dealer buys/sells securties for his/her accounts.

1. A broker is a person who executes the trade on behalf of others, whereas a dealer is a person who trades business on their own behalf.

2. A dealer is a person who will buy and sell securities on their account. On the other hand, a broker is one who will buy and sell securities for their clients.

3. While dealers have all the rights and freedom regarding the buying and selling of securities, brokers seldom seldom have this freedom and these rights.

4. A broker has only a little experience in the field compared to dealers. It has also been seen that brokers become dealers once they get experience.

5. A broker is normally paid a commission for transacting the business. A dealer is not paid a commission, and he or she is a primary principal.