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.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.