The term broker is used primarily as a designation of an intermediary in trading or insurance activities. Mediatory functions can be assigned to physical. individual or organization (the choice of the legal form depends on the laws of the country where the broker is registered).
Who is a broker in simple words
Questions about who is a broker and what is he for, usually arise from people unfamiliar with the financial market. People who had to do business or trade in the stock market and forex market, know about its main purpose. Thanks to brokerage services, any person can get access to trading in currency and precious securities.
In addition to intermediary services, the broker may be engaged in the implementation of additional work such as consulting, support during the execution of documents. When it comes to trading, financial broker specialists often provide analytical reviews of the market, give recommendations on trade deals, sometimes offer training and support in the process of buying / selling.
The key point of registering brokerage companies is to significantly simplify cooperation with large companies. It is more profitable for representatives of medium and small businesses with such a “layer” to pay a commission to a broker than to wait their turn in a huge number of applicants for partnership with world-class firms.
There are the following types of brokerage firms:
- Exchange. A company with the right to buy / sell securities (stocks, bonds), precious metals, trading on the foreign exchange market. In addition to the basic service of providing access to the market of financial assets, trust management of clients’ money is offered.
- Credit. An organization acting as an intermediary between a bank and a borrower. Offers assistance in the preparation of documents, selection of the best option for lending to individuals and legal entities.
- Customs. Engaged in the carriage of goods across the border. Cooperation with him allows you to eliminate paperwork, speed up the paperwork.
- Insurance. Such firms are engaged in the provision of insurance services, sale of policies, the consideration of situations involving compensation for damage.
- There are also real estate brokers who are intermediaries between clients and building companies. Thanks to such intermediaries, the buyer gets access to more commercial offers from different suppliers.
Benefits of working with Finmax FX Broker
Contacting a brokerage company, first of all, is justified by the desire to work with qualified professionals who know the market. Yes, you will have to pay for additional services, but nobody will be convinced by free service. A high level of service quality is possible only if there is a reasonable payment.
The benefits of contacting intermediaries are manifested in the following areas:
- Reduced risks of acquisition of illiquid goods. The trader receives accurate quotes for all traded assets.
- Issues in documentation are excluded. The broker provides all clients with competent specialists who are ready to undertake the preparation of papers and negotiations with public / private institutions.
- Reduced time spent on searching, the study of many proposals. When a contract is concluded with a broker, you can indicate your interest in certain conditions of cooperation and receive only individual offers.
- Officially registered broker always takes care of customers. This can be expressed in low commissions, guarantees of commercial / personal secrets, work “on the client.” Usually, the mediator also relies entirely on legal issues that he will comply with the current legislation.