what are the types of securities dealers 
in today s financial markets broker dealers bds are regulated entities that can engage in securities trading for both their own accounts and on behalf of clients some broker dealers act as agent pure broker facilitating trades only on behalf of customers and taking a commission others act as both principal and agent trading against customers from their own accounts there are thousands of broker dealers falling into one of two broad categories a wirehouse which sells its own products or an independent broker dealer which sells products from outside sources