A floor broker is an independent member of an exchange who can act as a broker for other members who become overloaded with orders, as an agent on the floor of the exchange. The floor broker receives an order via Teletype

Teletype Corporation

The Teletype Corporation, a part of American Telephone and Telegraph Company's Western Electric manufacturing arm since 1930, came into being in 1928 when the Morkrum-Kleinschmidt Company changed its name to the name of its trademark equipment...

 machine from his firm's trading department and then proceeds to the appropriate trading post on the exchange floor. There he joins other brokers and the specialist

Market maker

A market maker is a company, or an individual, that quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a profit on the bid-offer spread, or turn. From a market microstructure theory standpoint, market makers are net sellers of an option to be...

 in the security

Security

Security is the degree of protection against danger, damage, loss, and crime. Security as a form of protection are structures and processes that provide or improve security as a condition. The Institute for Security and Open Methodologies in the OSSTMM 3 defines security as "a form of protection...

 being bought or sold and executes the trade at the best competitive price available. On completion of the transaction the customer is notified through his registered representative

Registered Representative

A Registered Representative, also called a General Securities Representative, a Stock Broker, or an Account Executive, is an individual who is licensed to sell securities and has the legal power of an agent....

 back at the firm and the trade is printed on the consolidated ticker tape

Ticker tape

Ticker tape was the earliest digital electronic communications medium, transmitting stock price information over telegraph lines, in use between around 1870 through 1970...

 which is displayed electronically around the country. A floor broker should not be confused with a floor trader

Floor trader

A floor trader is a member of a stock or commodities exchange who trades on the floor of that exchange for his or her own account. The floor trader must abide by trading rules similar to those of the exchange specialists who trade on behalf of others. The term should not be confused with floor broker...

 who trades as a principal for his or her own account, rather than as a broker.
Commission brokers are employees of a member firm.