Video: What Does a Brokerage Do? 2024, July
Each person to some extent at least once used the services of a broker, often without even knowing about it. After all, brokers today are too tightly embedded in modern life, their services have become incredibly popular. But not everyone knows who they are. Brokers are intermediaries between a client and a specific company or its representative, and they can also work as a “middle link” between certain individuals. Their work is regulated by several legislative acts.
Now brokers have firmly taken their place in the field of intermediary services, so many people turn to them for help, especially when you need to save time, but not money. They always charge a small percentage of the commission for their services. As practice has shown, the best brokers are physical or legal, which provide a large list of services at a low cost of work and operational terms of the order.
Field of activity of brokers
Depending on the economic sphere, the activities of all brokers can be divided into the following groups:
- Financial brokers are individuals who engage in financial intermediation activities related to the circulation of funds. These include stock brokers (brokers), financial analysts, consulting companies and agencies.
- Non-financial brokers are individuals who are not directly involved in the processing of financial flows, but who can contribute to the active use of financial resources. This group includes real estate brokers, customs brokers, law firms, analytical consulting groups, and other brokers.
Form of ownership of brokers
Depending on the direction of the intermediaries, they can have a different form of ownership. The most common brokers are legal entities, most often private enterprises or joint-stock companies that work on a common taxation system.
Many customs brokers are legal entities in connection with the specifics of their activities. But stock exchange in most cases - individuals, less often - private entrepreneurs. Such brokers do not work directly with finances, but receive their commissions for each successful transaction and work directly with individuals, much less often with legal entities (due to the peculiarities of taxation on profits).
Features of the activity
Brokers always act as intermediaries between specific individuals, regardless of ownership. They take on the responsibility of speeding up the task, helping to draw up documents, including for goods at the border crossing. At the same time, they charge a specific amount of money for their services, which is fixed in the mediation agreement, which is signed after all the nuances are agreed. The following items must be spelled out in such an agreement:
- Subject of the contract (what exactly the broker should do).
- Service cost.
- Responsibility of the parties to the contract, their rights.
- Terms of the contract.
- Full bank and legal details of the parties.
Each person can order the services of a broker, taking into account the direction of activity. Their cost may vary depending on the specific situation on the market and must necessarily be fixed in the contract. Only in the case of legal advice or assistance in the sale and purchase of real estate, the cost of the services of a broker remains fixed.
Responsibility to the law and the client
Depending on the terms of the contract and the direction of intermediary services, brokers bear administrative and criminal liability. Administrative is limited to fines or cancellation of a license to provide brokerage services. This responsibility is common among insurance brokers, real estate brokers or legal advisors. Criminal liability is often used in cases of violation of customs legislation or in the presence of fraud.
Financial brokers
Financial brokers mediate in the provision of financial services. They work on stock exchanges, are engaged in the purchase and sale of shares, securities, goods and currencies. The best brokers in this area are companies that trade in the stock market or in binary options. They offer good conditions for their customers, provide trading platforms and are ready to conduct trainings and training for everyone.
What are binary options brokers? This term refers to those engaged in intermediary services in the field of binary options trading. These are high-risk companies, often without certificates or licenses. There are very few brokers who have the necessary licenses to trade in the binary options market, but they are considered the best.
