What does broker mean?
A broker is a person or firm that acts as an intermediary in buying and selling, arranging transactions between buyers and sellers in return for a commission or fee. The term appears across many domains — a stock broker trades securities, an insurance broker finds suitable policies, and a real estate broker handles property sales — but the underlying role is constant: the broker connects parties who need each other and facilitates the exchange. Used as a verb, to broker something means to negotiate or engineer an agreement between others, most often a deal, truce, or compromise, and this sense carries connotations of diplomacy and influence; a power broker is someone who shapes outcomes from behind the scenes without holding formal office. The word is neutral in tone, though the verb form leans slightly formal and is common in journalism. Its usefulness lies precisely in its breadth: wherever two sides must be brought together by a skilled third party, broker is the natural word.
A person or firm that buys and sells goods, securities, insurance, or other assets on behalf of clients in exchange for a commission.
"The broker executed the share purchase within minutes of receiving the order."
Frequently combined with a specifying noun, as in insurance broker, stockbroker, or real estate broker.
To arrange or negotiate a deal, agreement, or settlement between parties.
"Diplomats worked for months to broker a peace agreement."
Standard regular plural; used when referring to multiple dealers collectively, e.g. members of an exchange or profession.
"Brokers across the city braced themselves for a volatile trading day."
A good broker doesn't own what's being sold — they profit purely from knowing both sides of the deal better than anyone else in the room.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of broker
The word broker entered English in the late Middle Ages, borrowed from Anglo-Norman French brocour, which denoted a dealer or retailer. Its deeper origins are uncertain, though it has been linked to Old French terms connected with tapping or opening casks of wine, suggesting early associations with retail trade. From the noun came the derivative brokerage, meaning both the broker's business and the commission charged, and later the verb to broker, whose diplomatic and financial senses flourished from the nineteenth century onward.
Related word forms
How broker is actually used
As a noun, broker is neutral in register and appears widely in finance, insurance, and property contexts. As a verb, it is somewhat more formal and journalistic, typically used with nouns like deal, agreement, truce, or peace. The figurative phrase power broker denotes someone with significant behind-the-scenes political influence.
Easily confused with broker
"Broke" means having no money, while "broker" refers to a dealer acting for others or, as a verb, negotiating a deal.