Broker definition and missions of this finance professional

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Broker: definition and missions of this professional from the finance sector

The word “broker” is used indifferently to designate an individual or a company carrying out the activity of broker. This player can operate in the stock market, real estate market, banking market, etc. In all cases, it facilitates contact between buyers and sellers, for a brokerage fee. The intermediary is paid for this connection and not for the profitability of the transaction.

That’what is the broker’s job ?

The definition of broker is based on its intermediation activity, regardless of the market considered. In fact, this business operator offers his services to establish a link between supply and demand. It can therefore be considered as a facilitator of transactions 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 ;
  • Futures broker ;
  • Broker of options (currency derivatives, commodities, etc.).) ;
  • Broker of funds (treasury bills, investment funds, bonds, etc.).) ;
  • Broker of full exercise ;
  • Online Broker ;
  • Broker at discount.

These different points are not incompatible. It is therefore possible to cover several segments at the same time. You can find a list of the best online Forex trading brokers at https://actufinance.en/forex/brokers/ . The eToro website is one of the most popular players in the sector.

It is even presented 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 (Financial Markets Authority). Regulations in the industry are designed to protect consumers.

Indeed, they are not always aware of the risks associated with securities (scam, volatility, speculation …).

What is the difference between a trader and a broker ?

You can quickly identify the definition of broker by opposing it to “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 an economic actor selling or buying financial products on international stock exchanges. He operates on his own behalf and seeks to make capital gains on his trades. 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 the risk of capital loss if you do not master the rudiments of the Stock Exchange for dummies. On the other hand, individuals do not have free access to foreign exchange markets.

You need an intermediary to execute your orders on the stock markets.

The broker has the necessary licenses to trade in the stock market and is a representing the issuers of orders on the markets. It receives a commission on the operations of its customers and profits from trades made for its own account. In addition to executing orders, the broker is responsible for securing the traders’ funds.

What is the difference between a trader and a broker?

Qu’is that’a real estate broker ?

The definition of broker is quite basic and allows to transpose this business in various sectors. Indeed, the broker always plays the role of intermediary between supply and demand. The only differences are the applicable regulations, the possible investments, the leverage effect for the investor, etc.

Thus, a real estate broker is an operator facilitating the sales and purchases of houses, buildings, land, etc… It can offer its intermediation services to private or professional clients. 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 this field on specialized sites. Real estate advice for companies is also very popular on a global scale. In addition, they are a great ally for acquire or sell office space, industrial sites, commercial premises..

In practice, the intermediary will solicit his address book to obtain the most advantageous purchase or sale prices for his clients. It can also help you find the best rate on a real estate loan or any other type of loan. In short, a good real estate broker can find the most interesting opportunities for each investor profile.