Which entity typically charges a fee to handle trades between buyers and sellers of securities?

The entity that typically charges a fee to handle trades between buyers and sellers of securities is the broker-dealer. Broker-dealers act as intermediaries, facilitating the buying and selling of securities for clients. They execute buy and sell orders on behalf of their clients, either directly through their own account or by routing orders to exchanges or other market venues.

Broker-dealers earn their income by charging commissions or fees for each transaction they complete. This service is crucial in the financial markets as it provides liquidity and access for investors who wish to trade. They may also offer additional services, including research or financial advice, which can further enhance their value to clients.

While investment advisors provide guidance and manage clients' investment portfolios, they primarily do not execute trades directly but may charge advisory fees instead. Market makers play a role in providing liquidity by buying and selling securities for their own accounts, but they do not charge transaction fees in the same way that broker-dealers do. Lastly, a clearinghouse facilitates the settlement of trades, ensuring that transactions are completed correctly, but it operates differently from broker-dealers and does not charge fees based on trade execution.