What Does it Mean to have a "Duty of Best Execution"?

To have a “duty of best execution” means that a broker or entity fulfilling a trade request has to do so at the best possible execution for their client.

The ‘duty of best execution’ is more than just a guideline - it’s an SEC law. Broker-dealers must report quarterly to the SEC on how they route customers' orders, to ensure compliance. "Best execution” refers to both timing and price.

What is the Fiduciary Standard?
What is the Suitability Standard?
How do Advisors Charge and How Much Should I Pay?

Keywords: stocks, trading, duty of best execution, compliance,

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What is a Non-Current Asset?

A non-current asset is an asset on the balance sheet that is not expected to convert into unrestricted cash within a year

What are Net Sales?

Net sales are the amount of sales that will actually be counted towards a company’s bottom line

How is Ripple Different Than Bitcoin and Ethereum?

Ripple’s XRP has the third-largest market cap in the cryptocurrency world, but what gives it value?

What is currency in circulation?

Currency in circulation tends to be defined as the currency held, without including long term deposits or investments

If I Retire, Can I Keep the Health Plan My Employer Offered?

Some employers will offer legacy employees continued health care coverage even after retirement, but it isn't very common

Who is a Bill Collector?

Bill Collectors jobs are to extract as much payment from those who are past-due on payment obligations

What is an Adjustable Rate Mortgage?

With an adjustable rate mortgage (ARM) , the interest rate is lower at the beginning than the fixed-rate alternative

Can Something Happen to My Defined Benefit Plan?

The Pension Benefit Guaranty Corporation will insure benefits up to a point, but it may not replace the full value

What is Tier 1 Capital?

Tier 1 Capital are the core asset holdings of a bank. They are disclosed, liquid, risk-averse assets, and are used by...

What is an Uptrend?

An uptrend is a continuous upward movement in a stock's price. A security purchased at the beginning of an uptrend...