A person or firm in the business of buying and selling securities operating as both a broker and dealer depending on the transaction.
Technically, an independent broker dealer is only an agent who executes orders on behalf of clients, whereas a dealer acts as a principal and trades for his or her own account. Because most brokerages act as both brokers and principals, the term broker dealer is commonly used to describe them. Any person, other than a bank, engaged in the business of buying or selling securities on its own behalf or for others.