A broker whose clients are predominantly or exclusively large, institutional investors. Examples of an institutional broker's clients include hedge funds and banks. Given the sheer size of the trades in which institutional investors engage, an institutional broker may specialize in these types of investors because the commissions, while small, add up to a significant amount.. See also: Block trade.
A broker specializing in security trades for institutions such as banks and pension funds. Institutions usually trade in large blocks that require special handling.