What you want to know about brokers

Who is the Broker.

1. A Broker is a person or company charging fees or commissions for the execution of purchase and sale orders provided by the investor.
2. The role of the company when acting as agent for a customer and imposing a commission on the client for its services.
3. Certified real estate expert usually represents a real estate seller. The broker's duties may include: determining market values, advertising the sale of real estate, offering real estate to potential buyers, and advising clients on offers and related matters.

Concept of brokers.

Usually the rich can only afford the broker's expenses and access to the stock market. The Internet has caused a huge number of discount brokers, allowing investors to trade at the lowest cost, but they do not offer personal advice. As a result of the existence of discount brokers, anyone can invest in the stock market.

Discount brokers in exchange for a full-time brokers.

The discount brokers are able to execute any type of trading on behalf of the customer, which they charge a commission reduced from $ 5 to $ 15 per circulation. Their low fee organizer relies on low sales and costs. Brokers do not give investment advice and usually get paid on a salary rather than a commission. Most discount brokers offer the online trading platform, attracting an increasing number of self-directed investors.

Full-time brokers provide many services, including market research, investment advice and retirement plans, as well as a full range of investment products. Therefore, investors can expect to pay higher commissions for their trades.
The company compensates the brokers on the basis of the volume of trading as well as sales of investment products. A growing number of intermediaries offer fee-based investment products such as managed investment accounts.

As mentioned in site trading-secrets

Brokers are registered with the Financial Sector Regulatory Authority (FINRA), the self-regulatory body of intermediaries. At the service of their clients, intermediaries are held to a low level on the basis of convenience that requires reasonable reasons to recommend a particular product or investment.

The second part of the rule is referred to as "know your customer", which deals with the due diligence process on which the mediator must base the determination of reasonable grounds for the recommendation. The Broker shall make reasonable efforts to obtain information on the financial position of the Client, the development of taxes, investment objectives and other information that may be used in making a recommendation. This standard of conduct differs significantly from that applied to financial advisers registered with the Securities and Exchange Commission (SEC) as registered investment advisers (RIAs). Under the Investment Advisors Act of 1940, registered investment advisors meet a strict credit standard that always favors the customer while providing full disclosure of their fees.

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