GLOSSARY TERM
Broker
A broker is a company or platform that lets you buy and sell investments, such as stocks, ETFs or bonds.
What does this mean in practice?
You usually cannot buy investments directly from the stock market on your own. A broker acts as the service between you and the market. Through the broker's app or website, you can open an account, add money, place orders and hold your investments. Brokers may charge fees, and their features can vary a lot.
Example
If you want to buy a world ETF each month, you use a broker to place that order. Some brokers also offer recurring investing, so your purchases happen automatically.
Why it matters
Your broker is the tool you use to invest over many years. A good broker makes investing simple, low-cost and easy to continue regularly. A poor one can add unnecessary costs, friction or distractions.
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