Brokers fulfil many roles, they serve as facilitators, negotiators and intermediaries. They are however essentially mediators between two parties who come together in the process of buying and selling. The broker takes the position of being in the middle to negotiate the best deal for his clients. Brokers also help their clients with making financial decisions, and help them choose the best investments. Brokers are paid on commission basis, and a get paid a percentage of the transaction of the sale once it is complete.
You will find brokers across many sectors of the financial and commodities industries. You will find insurance brokers, mortgage brokers, stock brokers, real estate and real-estate brokers, just to name a few. And in each sector they take the roll as intermediary between buyer and seller.
Insurance brokers: Insurance brokers act as the intermediary between the insurer and the insured. An insurance broker helps his/her client to choose the best insurance policy for their needs and also helps process all the documentation. An insurance broker is different from an insurance agent in that the agent represents an insurance company and only sells insurance products from that particular company. An insurance broker on the other hand is the representative of the insured only, and usually works with several insurance companies to look for the best deal for their client.
Real estate broker: When it comes to real-estate, a broker acts as an intermediary in the buying selling or leasing of the property. When their client is a buyer they can help the client to buy a property at the best price. And when their client is a seller they can help them sell at the highest price too. They also advice and guide both parties through the buying or selling process.
Stock brokers: Stock brokers buy and sell stock and other securities in a corporation on behalf of either an individual person or a company. It is their job to connect buyers and sellers. They have the duty and obligation to behave fairly, and act in the clients’ best interest of both parties. Brokers also act as advisories for investors, helping them with investment decisions and financial management.
High-end brokers and cheaper brokers: When it comes to making investment decisions, brokers can either advice you on your different investment options as well as do all the research for you having all your personal financial details in hand, or they can advice you and have you do your own research.
High-end brokers: When it comes to doing the research and the planning of your finances, the high-end broker will do it for you. They usually have a team of researchers working for them, as they study the market and how it is fairing. Brokers study the market and have to predict when it will be best to buy and sell, depending on the indicators.
Online brokers: Online brokers can be found by going to brokerage web sites. On the websites they have a list of investment information for you to access, such as investment databases, graphs and charts and investment tips. They basically offer you the information and you have to take it from there.
Discount brokers: The same applies for the discount broker, although once you have made your decision he will help you with the paperwork.