What is a Broker? - Buy-Side Market Participant Explained

e. A buy-side market participant

A broker is a financial professional who acts as an intermediary between buyers and sellers of securities. They facilitate transactions in the financial markets on behalf of their clients, typically institutional investors or individual traders. Brokers are considered 'buy-side' market participants because they work on behalf of investors who are looking to purchase securities. They help their clients research potential investments, execute trades, and manage their portfolios.

In contrast, 'sell-side' market participants include investment banks and other firms that create and sell securities to investors. Brokers play a crucial role in the financial markets by providing access to liquidity and facilitating price discovery.