Broker: definition and missions of this financial professional
The word "broker" is used indifferently to designate an individual or a company carrying out the activity of broker. This actor can operate in the stock market, real estate, banking, etc. In all cases, he facilitates contact between buyers and sellers, in exchange for a brokerage fee. The intermediary is paid for this connection and not for the profitability of the transaction.
Qu’Is the broker's job ?
The definition of broker is based on its intermediation activity, regardless of the market considered. Indeed, this business operator offers its services to establish a link between supply and demand. It can therefore be considered as a transaction facilitator in general. For the general public, this type of broker is mostly associated with stock markets and related trades such as :
- Stock or investment broker (stockbroker);
- Forex Broker ;
- Broker of futures contracts (Futures) ;
- Options broker (currency derivatives, commodities, etc.).) ;
- Broker of funds (treasury bills, investment funds, bonds, etc.).) ;
- Full service broker ;
- Online Broker;
- Discount broker.
These different points are not incompatible. It is therefore possible to cover several segments at the same time. You can discover a list of the best online Forex trading brokers on https://actufinance.en/forex/brokers/ . The eToro site is among the most popular players in the industry.
It is even referred to as the best social trading platform for beginners.
A Forex broker is often a brokerage company regulatesemented. In France, these services are regulated by the AMF (Autorité des marchés financiers). Regulation in the sector aims to protect consumers.
Indeed, they are not always aware of the risks related to securities (scam, volatility, speculation…).
What is the difference between a trader and a broker ?
You will be able to quickly identify the definition of broker by contrasting it with "trader". These two operators are indeed complementary. They are even inseparable in some intermediation actions. That said, these terms are mostly used on the financial markets and the Web. Thus, "broker" refers to "trading site" in the selection of the best Forex brokers on https://actufinance.en/forex/brokers/ .
In concrete terms, the trader is a economic actor selling or buying financial products on international stock exchanges. He operates on his own behalf and seeks to make a profit on his transactions. This activity is theoretically open to everyone, without any specific approval or competence in the field.
However, you need to understand how stock quotes and indices work to make money. You expose yourself to risks of capital loss if you do not master the Stock market basics for dummies. On the other hand, individuals do not have free access to.
You need an intermediary to execute your orders on the stock markets.
The broker You need an intermediary to execute your orders on the stock market represent the issuers of orders on the markets. He receives a commission on his clients' transactions and profits from trades made on his own behalf. In addition to executing orders, the broker is responsible for securing the traders' funds.
Qu is it real estate broker ?
The definition of broker is quite basic and allows transpose this profession in various sectors. Indeed, the broker always plays the role of intermediary between supply and demand. The only differences will be in the applicable regulations, the possible investments, the leverage for the investor, etc.
Thus, a real estate broker is an operator facilitating the sales and purchases of houses, buildings, land… It can propose its intermediation services to private or professional customers. To speed up transactions, the offer is often classified by type of property, use, area, theme, etc.
If you prefer to invest in an ecological project, you can even find the best broker in the matter on specialized sites. Real estate advice for companies is also popular worldwide. Moreover, the real estate broker is a great ally for acquire or sell office space, industrial sites, commercial premises..
In practice, the intermediary will use his address book to obtain the most advantageous purchase or sale prices for his clients. He can also help you find the best rate on a mortgage or any other type of loan. In short, a good real estate broker can find the most interesting opportunities for each investor profile.