The practice in which a brokerage that agrees to
buy or
sell securities on behalf of clients at a given
price instead buys at a lower price or sells at a higher price in order to keep the difference as
profit. Bucketing is illegal in the United States because it is a violation of the brokerage's
fiduciary responsibility to act in the best interest of the client (in this case, to find the best available price). Brokerages that routinely engage in bucketing are known as
bucket shops. The practice is occasionally called bucketeering. See also: Profiteering,
Bucketeer.