A broker is a person or entity that arranges transactions between a buyer and a seller . This may be done for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be confused with that of an agent —one who acts on behalf of a principal party in a deal.
21-475: FinecoBank S.p.A. , known as FinecoBank or just Fineco is an Italian bank that specializes in online brokerage . Launched in 1999 with its Fineco Online service for retail traders, Fineco became a listed company in 2014 and has been independent from UniCredit banking group since 2019. FinecoBank is a constituent of FTSE MIB (since 2016), the blue chip index of the Borsa Italiana . Since 2015 it has over
42-605: A duty to obtain "best execution" of transactions, which generally means achieving the best economic price under the circumstances. On April 28, 2004, the SEC voted unanimously to change the net capital rule which applies to broker-dealers, thus allowing those with "tentative net capital" of more than $ 5 billion to increase their leverage ratios. The rule change remains in effect, though subject to modifications. Although broker-dealers often provide investment advice to their clients, in many situations they are exempt from registration under
63-477: A further 30% shares to public market. In May 2019, UniCredit sold another 17% shares of FinecoBank. As UniCredit owned 18% shares of FinecoBank after the transaction, FinecoBank is no longer an associate company of UniCredit. In 2020, Fineco decided to spend 7 million euros on a marketing campaign to grow its services in UK , whose launch was authorised earlier in the same year. FinecoBank Banca Fineco serves customers in
84-595: A million customers in Italy , where its role has been compared to that of Schwab in USA . FinecoBank has been designated in 2021 as a Significant Institution under the criteria of European Banking Supervision , and as a consequence is directly supervised by the European Central Bank . The predecessor of Fineco was a financial institution known as GI-FIN S.r.l. in 1982 and then GI-FIN S.p.A. from October 1982. In 1983,
105-503: Is a broker that transacts for its own account, in addition to facilitating transactions for clients. Brokerage firms are generally subject to regulations based on the type of brokerage and jurisdictions in which they operate. Examples of brokerage firm regulatory agencies include the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA), which regulate stockbrokers in
126-530: The Securities Investor Protection Corporation (SIPC) (pursuant to 15 U.S.C. § 78ccc ) and are subject to its regulations. Some regulatory authority is further delegated to the Financial Industry Regulatory Authority (FINRA), a self-regulatory organization . Many states also regulate broker-dealers under separate state securities laws (called " blue sky laws "). The 1934 Act defines "broker" as "any person engaged in
147-588: The Securities and Exchange Commission and one or more self-regulatory organizations, such as the Financial Industry Regulatory Authority (FINRA). The forms of compensation may be sales loads from investors, or Rule 12b-1 fees or servicing fees paid by the mutual funds. There are several online portals that offer broker dealer assistance and search capabilities. UK securities law uses the term intermediary to refer to businesses involved in
168-506: The U.S. Investment Advisers Act of 1940, so long as (i) the investment advice is "solely incidental" to brokerage activities; and (ii) the broker-dealer receives no "special compensation" for providing the investment advice. Both elements of this exemption must be met to rely on it. Many broker-dealers also serve primarily as distributors for mutual fund shares. These broker-dealers may be compensated in numerous ways and, like all broker-dealers, are subject to compliance with requirements of
189-519: The United Kingdom and Italy. UniCredit sold its remaining stake in FinecoBank in 2019. Brokerage A broker is an independent party whose services are used extensively in some industries. A broker's prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller. An example would be a real estate broker who facilitates
210-546: The United States. The word "broker" derives from Old French broceur "small trader", of uncertain origin, but possibly from Old French brocheor meaning "wine retailer", which comes from the verb brochier , or "to broach (a keg)". Broker-dealer In financial services , a broker-dealer is a natural person , company or other organization that engages in the business of trading securities for its own account or on behalf of its customers. Broker-dealers are at
231-495: The business of effecting transactions in securities for the account of others", and defines "dealer" as "any person engaged in the business of buying and selling securities for his own account, through a broker or otherwise". Under either definition, the person must be performing these functions as a business; if conducting similar transactions on a private basis, they are considered a trader and subject to different requirements. When acting on behalf of customers, broker-dealers have
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#1732876741551252-429: The heart of the securities and derivatives trading process. Although many broker-dealers are "independent" firms solely involved in broker-dealer services, many others are business units or subsidiaries of commercial banks , investment banks or investment companies . When executing trade orders on behalf of a customer, the institution is said to be acting as a broker . When executing trades for its own account,
273-409: The institution is said to be acting as a dealer . Securities bought from clients or other firms in the capacity of dealer may be sold to clients or other firms acting again in the capacity of dealer, or they may become a part of the firm's holdings. In addition to execution of securities transactions, broker-dealers are also the main sellers and distributors of mutual fund shares. After announcing
294-600: The institution was incorporated as Istituto per le Cessioni del Quinto S.p.A. (ICQ), which later known as Novara ICQ S.p.A. and then ICQ Banca Cisalpina S.p.A. . ICQ Banca Cisalpina was a subsidiary of Banca Popolare di Novara (BP Novara). In 1990–91, BP Novara owned 51.21% shares of ICQ Banca Cisalpina. ICQ Banca Cisalpina was also a listed company, which was delisted in 1996 by its new owner Banca Popolare di Brescia (Bipop). In 1999, Bipop merged with Cassa di Risparmio di Reggio Emilia (Carire) to form Bipop Carire . As of 1990, Banca Popolare di Brescia also partially owned
315-559: The interdealer market. Interdealers facilitate price discovery and execution between dealers. In the United States, broker-dealers are regulated under the Securities Exchange Act of 1934 by the Securities and Exchange Commission (SEC), a unit of the U.S. government. All brokers and dealers that are registered with the SEC (pursuant to 15 U.S.C. § 78o ), with a number of exceptions, are required to be members of
336-406: The market, probably will not have the same access to customers as a broker. Another benefit of using a broker is cost—they might be cheaper in smaller markets, with smaller accounts, or with a limited line of products. Some brokers, known as discount brokers, charge smaller commission , sometimes in exchange for offering less advice or services than full service brokerage firms. A broker-dealer
357-454: The namesakes Fin-Eco Leasing (33.33%) and Fin-Eco Factoring (30%). As of 1994, Bipop owned the aforementioned companies via an intermediate holding company Fin-Eco Holding. The Holding also owned another subsidiary Fin-Eco SIM. Bipop also attempted to acquire another namesake Cisalpina Gestioni in 1994. After the 1999 merger, the banking group re-organized ICQ Banca Cisalpina as well as Fin-Eco Leasing and Fin-Eco Factoring. ICQ Banca Cisalpina
378-719: The price, the dealer must announce other essential conditions of the buy-sell contract of securities: minimum and maximum number of securities subject to purchase and/or sale, as well as the term of announced price's validity. Dealers perform all the functions of a stockbroker including financial consulting. They organize and support turnover (liquidity) or market-making (price announcing, duty of sell and buy of security at announced price, announcing of min and max number of securities that can be bought/sold at announced price, implementing time periods when announced prices are available. Dealers are large financial institutions that sell securities to end users and then hedge their risk by partaking in
399-547: The purchase and sale of securities for the account of others. The Financial Conduct Authority authorises and regulates companies engaging in such activity as "regulated activities" under the Financial Services and Markets Act 2000 . The common Japanese term for a broker-dealer is "securities company" ( 証券会社 , shōken-gaisha ) . Securities companies are regulated by the Financial Services Agency under
420-427: The sale of a property. Brokers can furnish market research and market data . Brokers may represent either the seller or the buyer but generally not both at the same time. Brokers are expected to have the tools and resources to reach the largest possible base of buyers and sellers. They then screen these potential buyers or sellers for the perfect match. An individual producer, on the other hand, especially one new in
441-408: Was renamed to "Fin-Eco Banca ICQ S.p.A." (Banca Fin-Eco in short) in 1999, which was considered as the launch date of the current Fineco. In 2002, Bipop Carire and Fineco became part of Capitalia banking group. In 2007, Capitalia was absorbed into UniCredit banking group, while Fineco was kept as a separate subsidiary. In 2014 FinecoBank started its initial public offering . In 2016 UniCredit sold
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