Broker is an intermediary between the seller and the buyer of securities. The broker works for a commission and performs transactions with securities on behalf of the client and at his expense. The broker's arsenal of services is extremely wide.
A broker is an individual, that is, a person, or a legal entity, that is, a brokerage company that acts as an intermediary between the seller and the buyer. The broker's earnings are commissions from the transaction. A license is required to carry out brokerage activities.
Broker's "area of responsibility"
Basically, a broker buys and sells securities on behalf of his client. Today there is a huge number of brokerage companies where a client can "bring" his money and take risks, wishing to increase his capital. The functions of a broker can be successfully performed by various banks and investment companies. The latter, as a rule, provide a whole range of services that are related to consulting and brokerage services, dealer and depository activities, securities management and venture capital investments.
You can enter the foreign exchange market only after concluding an agreement with a broker and transferring a certain amount of money to his account. Some brokers claim that they do not have a certain monetary threshold, but they will not talk to clients who want to try their hand at the game for fun and come from 1000 rubles. After signing the contract, the broker gets the right to carry out transactions with securities on behalf of the client and at his expense.
In addition to all the basic functions, the broker can provide the trader with a workstation for playing on the stock exchange, fully equipped with everything necessary. The brokerage company is able to take on the depository function, that is, to deal with the storage of securities and other documents belonging to the trader. In the arsenal of an intermediary, there is also such a service as providing a brokerage leverage. We are talking about pledging credit funds. At the request of the client, the broker will conduct fundamental analysis and investment research of the stock market, establish contact with sellers and buyers of securities on behalf of the trader. For the analysis, trading terminals are used, where they trade online and exchange messages with representatives of other brokerage companies.
Who becomes a broker
You cannot learn to be a broker. You can get a technical education, and the rest will be the work of the "hands" of the brain, capable of well systematizing information and analyzing the data obtained. A broker must be sociable, efficient and, most importantly, resistant to stress, because working in the securities market is always very risky and involves appealing large sums of money.