A process by which a retail broker chooses to fill a client's order from its on inventory rather than sending it to a market maker for execution. When a brokerage firm internalizes the execution, it makes money both from the commission it charges for the transaction and from the spread.

Use internalization in a sentence

We practiced internalization and I thought it was a really good practice because it put us in a safe position.

​ Was this Helpful? YES  NO 6 people found this helpful.

The internalization reduced the fees we were paying as we were facilitating the transaction in house instead of using the broker.

​ Was this Helpful? YES  NO 2 people found this helpful.

Joe stopped utilizing a particular money manager because he felt their process of internalization was unethical and he didn't want legal trouble.

​ Was this Helpful? YES  NO 9 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
internal trade international