Commission Broker Law and Legal Definition

Commission broker means a broker of a stock or commodity exchange on the exchange floor who buys and sells stocks on a commission basis. They also act as an agent for a particular brokerage house in trading securities. The stock generally flows to the commission broker from the firm's trading desk or from its registered representatives. While acting as an agent s/he must make trades as directed by the client. The commission given to a commission broker for their services will be a percentage of value of each transaction the broker makes. A commission broker must make trades in good faith.