two-dollar broker

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Two-Dollar Broker

A broker who conducts trades for another broker's client because the second broker is too busy to do so. The commission the client pays goes to his/her own broker, but the two dollar broker receives a portion from the other broker. Originally, this commission was $2, but now it is negotiated between the two brokers.

two-dollar broker

A member of a securities exchange who executes orders for other members. A two-dollar broker performs essentially the same function as a commission broker except that he or she is independent rather than a representative of a specific firm. Also called independent broker.
References in periodicals archive ?
Through Platinum's central order screen, listed users can access institutions, broker/dealers, floor booths, independent $2 brokers, and ECNs/ATSes," said Waters.
Among the more than 15 new clients signed this week for NYFIX services are a mix of major brokerage firms, buy-side institutions and a number of independent $2 brokers operating on the floor of the New York Stock Exchange.