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| Floor Broker |
Floor broker is an investment professional whose firm is a member of an exchange, typically a stock exchange, and who helps clients buy and sell securities on the floor of that exchange. Orders are transmitted to floor brokers via the firms they work for or through other registered representatives.
These brokers could also be independent brokers, where they work for themselves and accept orders from any firm wishing to employ their services. In exchange for the services they provide, floor brokers receive commissions for executing transactions.
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With the growth in the over-the-counter (OTC) markets and electronic trading in general, floor brokers will become less necessary in future, and the services they once provided will be carried out electronically. Floor brokers have also been called two-dollar brokers, as the compensation at one time for executing trades was $2 per trade.
