What is a Two Dollar Broker?

A two dollar broker is a floor broker which executes orders on behalf of other brokers.
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A two dollar broker is a floor broker which executes orders on behalf of other brokers.

They are referred to as ‘two dollar brokers’ as they were originally paid $2 commission per round lot trade – but now commission prices are negotiated between both parties.

These other brokers typically have too much business at that time and are unable to handle the volume on their own.

 

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