What Is A Broker Dealer License

Section 3 a 5 a of the act generally defines a dealer as.

What is a broker dealer license. Broker dealer licenses all broker dealers must obtain a broker dealer license before effecting any securities transactions in the district of columbia. Dealers license llc is a firm that is located in greenville s c. A broker dealer b d is a person or firm in the business of buying and selling securities for its own account or on behalf of its customers. Broker dealer firms must register with a variety of regulatory bodies and in order to operate legally including finra and state regulatory bodies.

Receiving a license will legally enable a firm to buy and sell regulated securities on behalf of others. The finra broker dealer bd registration process covers the firm s full life cycle from meeting initial membership standards to updating and renewing its registration. Conducts business as or engages an unregistered broker dealer. Unlike a broker who acts as agent a dealer acts as principal.

Any person engaged in the business of buying and selling securities for his own account through a broker or otherwise. 2 1 2 consequences of registration once registered a registered broker dealer is subject to numerous compliance requirements and obligations under the 8. The term broker dealer is used in u s. Finra has been slow to process approximately 40 applications for broker dealer licenses.

To become a broker dealer you must be licensed and pass several qualifying exams. Broker dealers are at the heart of the securities and derivatives trading process. A broker dealer b d is a license granted by the securities and exchange commission sec that entitles the licensee to buy and sell securities for its clients accounts. As the cryptocurrency industry is transitioning from the ico to the regulatory compliant security token offering sto a broker dealer license is attractive and perhaps necessary for many.

The firm may also act as principal or dealer trading. Although many broker dealers are independent firms solely involved in broker dealer services many others are business units or subsidiaries of or. As a dealer a broker dealer is one of the parties doing the buying or selling.