Also known as a Brokerage Firm, this is a company is licensed to buy and sell securities on behalf of investors. Broker-dealers are regulated by FINRA and client accounts are protected to some extent by the Securities Investor Protection Corporation. When acting as a dealer, the firm sells securities to investors that it owns or buys them from investors to hold in its own account. Its compensation may include fees and/or commissions. When acting as a broker, the firm acts as an intermediary, helping buyers and sellers execute trades. As a broker, the firm’s compensation can include fees and/or commissions, as well as a spread.