Broker-Dealer
Also called: broker dealer, BD, brokerage firm
A broker-dealer executes trades for customers and deals for its own account, regulated by the SEC and FINRA. It's compensated primarily through commissions and spreads rather than advisory fees. The compensation model is what generates the conflicts that Regulation Best Interest and disclosure rules try to manage, and asking how someone is paid remains the fastest way to understand which model you're dealing with.