Broker: Difference between revisions

Browse history interactively ← Previous edit Next edit →Content deleted Content addedVisual WikitextInline

Revision as of 11:00, 23 June 2023 editKuru (talk \| contribs)Edit filter managers, Autopatrolled, Administrators204,628 edits again, this is for the generic concept of brokers; maybe add this trivia to stockbroker. please use the article's talk page to explain you positionTag: Manual revert ← Previous edit		Revision as of 12:46, 23 June 2023 edit undoAarfrunzindin (talk \| contribs)Extended confirmed users1,172 edits →Definition: I don't know what all this fuss is about. OK, Misplaced Pages avoids facts and historical details now. Great! Good luck with that.Tags: Reverted Visual edit Next edit →
Line 9:		Line 9:
	Brokers can furnish ] and ]. Brokers may represent either the seller or the buyer but generally not both at the same time. Brokers are expected to have the tools and resources to reach the largest possible base of buyers and sellers. They then screen these potential buyers or sellers for the perfect match. An individual producer, on the other hand, especially one new in the market, probably will not have the same access to customers as a broker. Another benefit of using a broker is cost—they might be cheaper in smaller markets, with smaller accounts, or with a limited line of products.<ref name=Spiro>{{cite book \| url=https://books.google.com/books?id=kamlQgAACAAJ \| last1=Spiro \| first1=Rosann L. \| first2=William J. \| last2=Stanton \| first3=Gregory A. \| last3=Rich \| title=Management of a Sales Force''. 12th ed. \| publisher=McGraw-Hill/Irwin \| year=2003\| isbn=9780256020465 }}</ref>		Brokers can furnish ] and ]. Brokers may represent either the seller or the buyer but generally not both at the same time. Brokers are expected to have the tools and resources to reach the largest possible base of buyers and sellers. They then screen these potential buyers or sellers for the perfect match. An individual producer, on the other hand, especially one new in the market, probably will not have the same access to customers as a broker. Another benefit of using a broker is cost—they might be cheaper in smaller markets, with smaller accounts, or with a limited line of products.<ref name=Spiro>{{cite book \| url=https://books.google.com/books?id=kamlQgAACAAJ \| last1=Spiro \| first1=Rosann L. \| first2=William J. \| last2=Stanton \| first3=Gregory A. \| last3=Rich \| title=Management of a Sales Force''. 12th ed. \| publisher=McGraw-Hill/Irwin \| year=2003\| isbn=9780256020465 }}</ref>

	Some brokers, known as discount brokers, charge smaller ], sometimes in exchange for offering less advice or services than full service brokerage firms.<ref>{{cite web \| url=https://www.investopedia.com/terms/d/discountbroker.asp \| title=What is a Discount Broker? \| publisher=] \| date=March 5, 2019}}</ref>		Some brokers, known as discount brokers, charge smaller ], sometimes in exchange for offering less advice or services than full service brokerage firms.<ref>{{cite web \| url=https://www.investopedia.com/terms/d/discountbroker.asp \| title=What is a Discount Broker? \| publisher=] \| date=March 5, 2019}}</ref> Commission-free brokerage also exists since the 2010s.<ref>{{Cite web \|date=2021-09-28 \|title=3 Things to Know About Robinhood and Zero-Commission Stockbrokers \|url=https://finance.yahoo.com/news/3-things-know-robinhood-zero-110000284.html \|access-date=2023-06-23 \|website=Yahoo Finance \|language=en-US}}</ref><ref>{{Cite web \|last=Egan \|first=Matt \|date=2019-12-13 \|title=This app completely disrupted the trading industry {{!}} CNN Business \|url=https://www.cnn.com/2019/12/13/investing/robinhood-free-trading-fractional-shares/index.html \|access-date=2023-06-23 \|website=CNN \|language=en}}</ref><ref>{{Cite news \|last=Mccrank \|first=John \|date=2021-07-29 \|title=Explainer: Robinhood makes most of its money from PFOF. What is it? \|language=en \|work=Reuters \|url=https://www.reuters.com/business/finance/robinhood-makes-most-its-money-pfof-what-is-it-2021-07-29/ \|access-date=2023-06-23}}</ref>

	A ] is a broker that transacts for its own account, in addition to facilitating transactions for clients.<ref>{{cite web \| url=https://www.investopedia.com/investing/broker-dealer-firms/ \| title=Top 15 Broker-Dealer Firms in 2018 \| first=KEVIN B. \| last=JOHNSTON \| publisher=] \| date=February 23, 2019}}</ref>		A ] is a broker that transacts for its own account, in addition to facilitating transactions for clients.<ref>{{cite web \| url=https://www.investopedia.com/investing/broker-dealer-firms/ \| title=Top 15 Broker-Dealer Firms in 2018 \| first=KEVIN B. \| last=JOHNSTON \| publisher=] \| date=February 23, 2019}}</ref>

Revision as of 12:46, 23 June 2023

Person who arranges transactions between a buyer and a seller for a commission For other uses, see Broker (disambiguation).

A broker is a person or firm who arranges transactions between a buyer and a seller. This may be done for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be confused with that of an agent—one who acts on behalf of a principal party in a deal.

Definition

A broker is an independent party whose services are used extensively in some industries. A broker's prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller. An example would be a real estate or stock broker who facilitates the sale of a property.

Brokers can furnish market research and market data. Brokers may represent either the seller or the buyer but generally not both at the same time. Brokers are expected to have the tools and resources to reach the largest possible base of buyers and sellers. They then screen these potential buyers or sellers for the perfect match. An individual producer, on the other hand, especially one new in the market, probably will not have the same access to customers as a broker. Another benefit of using a broker is cost—they might be cheaper in smaller markets, with smaller accounts, or with a limited line of products.

Some brokers, known as discount brokers, charge smaller commission, sometimes in exchange for offering less advice or services than full service brokerage firms. Commission-free brokerage also exists since the 2010s.

A broker-dealer is a broker that transacts for its own account, in addition to facilitating transactions for clients.

Brokerage firms are generally subject to regulations based on the type of brokerage and jurisdictions in which they operate. Examples of brokerage firm regulatory agencies include the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA), which regulate stockbrokers in the United States.

Etymology

The word "broker" derives from Old French broceur "small trader", of uncertain origin, but possibly from Old French brocheor meaning "wine retailer", which comes from the verb brochier, or "to broach (a keg)".

Types of brokers

References

^ Spiro, Rosann L.; Stanton, William J.; Rich, Gregory A. (2003). Management of a Sales Force. 12th ed. McGraw-Hill/Irwin. ISBN 9780256020465.
"What is a Discount Broker?". Investopedia. March 5, 2019.
"3 Things to Know About Robinhood and Zero-Commission Stockbrokers". Yahoo Finance. 2021-09-28. Retrieved 2023-06-23.
Egan, Matt (2019-12-13). "This app completely disrupted the trading industry | CNN Business". CNN. Retrieved 2023-06-23.
Mccrank, John (2021-07-29). "Explainer: Robinhood makes most of its money from PFOF. What is it?". Reuters. Retrieved 2023-06-23.
JOHNSTON, KEVIN B. (February 23, 2019). "Top 15 Broker-Dealer Firms in 2018". Investopedia.
Harper, Douglas. "broker". Online Etymology Dictionary. Retrieved 2010-04-10.

External links

Media related to Brokers at Wikimedia Commons

Online brokerages

Companies

Canada	CIBC Mellon Qtrade Questrade RBC Direct Investing TD Direct Investing Virtual Brokers Wealthsimple
India	Angel Broking Axis Direct Dhani Edelweiss FundsIndia Geojit Financial HDFC securities ICICIdirect India Infoline Karvy Corporate Kotak Securities Kuvera.in Motilal Oswal Reliance Securities Religare Sharekhan
United States	Ally Financial Charles Schwab Thinkorswim Chase Bank Citibank E-Trade Fidelity Investments Firstrade Securities FXCM Interactive Brokers Lightspeed M1 Finance Merrill Edge Moomoo (company) PNC Financial Robinhood SoFi TradeStation U.S. Bancorp The Vanguard Group Webull WellsTrade
Europe	ActivTrades Avanza BUX CMC Markets Degiro Doorstep Dukascopy Bank eToro FinecoBank Finam Holdings Freetrade HSBC InvestDirect IG Group Interactive Investor Lightyear Nordnet OTP Bank Plus500 Saxo Bank Standard Chartered Swissquote Trade Republic
Asia	Citibank UAE Citibank International Personal Bank Singapore Futu IC Markets Maybank Monex Group OCBC Bank UOB-Kay Hian
Elsewhere	Alpari Group CommSec FxPro Pepperstone Stake V.T Markets

Concepts

Category:Online brokerages

Category:

Financial services occupations

Revision as of 11:00, 23 June 2023 editKuru (talk \| contribs)Edit filter managers, Autopatrolled, Administrators204,628 edits again, this is for the generic concept of brokers; maybe add this trivia to stockbroker. please use the article's talk page to explain you positionTag: Manual revert ← Previous edit		Revision as of 12:46, 23 June 2023 edit undoAarfrunzindin (talk \| contribs)Extended confirmed users1,172 edits →Definition: I don't know what all this fuss is about. OK, Misplaced Pages avoids facts and historical details now. Great! Good luck with that.Tags: Reverted Visual edit Next edit →
Line 9:		Line 9:
	Brokers can furnish ] and ]. Brokers may represent either the seller or the buyer but generally not both at the same time. Brokers are expected to have the tools and resources to reach the largest possible base of buyers and sellers. They then screen these potential buyers or sellers for the perfect match. An individual producer, on the other hand, especially one new in the market, probably will not have the same access to customers as a broker. Another benefit of using a broker is cost—they might be cheaper in smaller markets, with smaller accounts, or with a limited line of products.<ref name=Spiro>{{cite book \| url=https://books.google.com/books?id=kamlQgAACAAJ \| last1=Spiro \| first1=Rosann L. \| first2=William J. \| last2=Stanton \| first3=Gregory A. \| last3=Rich \| title=Management of a Sales Force''. 12th ed. \| publisher=McGraw-Hill/Irwin \| year=2003\| isbn=9780256020465 }}</ref>		Brokers can furnish ] and ]. Brokers may represent either the seller or the buyer but generally not both at the same time. Brokers are expected to have the tools and resources to reach the largest possible base of buyers and sellers. They then screen these potential buyers or sellers for the perfect match. An individual producer, on the other hand, especially one new in the market, probably will not have the same access to customers as a broker. Another benefit of using a broker is cost—they might be cheaper in smaller markets, with smaller accounts, or with a limited line of products.<ref name=Spiro>{{cite book \| url=https://books.google.com/books?id=kamlQgAACAAJ \| last1=Spiro \| first1=Rosann L. \| first2=William J. \| last2=Stanton \| first3=Gregory A. \| last3=Rich \| title=Management of a Sales Force''. 12th ed. \| publisher=McGraw-Hill/Irwin \| year=2003\| isbn=9780256020465 }}</ref>

	Some brokers, known as discount brokers, charge smaller ], sometimes in exchange for offering less advice or services than full service brokerage firms.<ref>{{cite web \| url=https://www.investopedia.com/terms/d/discountbroker.asp \| title=What is a Discount Broker? \| publisher=] \| date=March 5, 2019}}</ref>		Some brokers, known as discount brokers, charge smaller ], sometimes in exchange for offering less advice or services than full service brokerage firms.<ref>{{cite web \| url=https://www.investopedia.com/terms/d/discountbroker.asp \| title=What is a Discount Broker? \| publisher=] \| date=March 5, 2019}}</ref> Commission-free brokerage also exists since the 2010s.<ref>{{Cite web \|date=2021-09-28 \|title=3 Things to Know About Robinhood and Zero-Commission Stockbrokers \|url=https://finance.yahoo.com/news/3-things-know-robinhood-zero-110000284.html \|access-date=2023-06-23 \|website=Yahoo Finance \|language=en-US}}</ref><ref>{{Cite web \|last=Egan \|first=Matt \|date=2019-12-13 \|title=This app completely disrupted the trading industry {{!}} CNN Business \|url=https://www.cnn.com/2019/12/13/investing/robinhood-free-trading-fractional-shares/index.html \|access-date=2023-06-23 \|website=CNN \|language=en}}</ref><ref>{{Cite news \|last=Mccrank \|first=John \|date=2021-07-29 \|title=Explainer: Robinhood makes most of its money from PFOF. What is it? \|language=en \|work=Reuters \|url=https://www.reuters.com/business/finance/robinhood-makes-most-its-money-pfof-what-is-it-2021-07-29/ \|access-date=2023-06-23}}</ref>

	A ] is a broker that transacts for its own account, in addition to facilitating transactions for clients.<ref>{{cite web \| url=https://www.investopedia.com/investing/broker-dealer-firms/ \| title=Top 15 Broker-Dealer Firms in 2018 \| first=KEVIN B. \| last=JOHNSTON \| publisher=] \| date=February 23, 2019}}</ref>		A ] is a broker that transacts for its own account, in addition to facilitating transactions for clients.<ref>{{cite web \| url=https://www.investopedia.com/investing/broker-dealer-firms/ \| title=Top 15 Broker-Dealer Firms in 2018 \| first=KEVIN B. \| last=JOHNSTON \| publisher=] \| date=February 23, 2019}}</ref>