A broker is an agent or company that connects a buyer and a seller .
The term has a very diverse application in the economic vocabulary. Its main uses are related to commerce, the stock market, the real estate market and maritime logistics.
In general, the broker’s role is not limited to finding and connecting those interested in a business. There are sectors in which the broker is usually an agent that adds value to the operation, as a kind of consultant , because they have extensive knowledge of the market in which they work.
Regardless of the sector, brokers generally act by paying commissions.
The broker is an agent who works in the industry distribution chain, bridging the retail business.
In this sector, the broker is usually the representative of one or more industries, but is not limited to the role of seller or distributor.
The broker generally works closer to the client, taking as an example of performance:
- Asset rotation monitoring;
- Marketing strategy development;
- Helps in inventory management;
- Define the right product mix for that specific vendor.
In other words, more than knowing the products it represents, the broker also needs to deepen the buyer’s profile. With this, you can offer a more personalized service with the aim of increasing sales.
Stock market broker
In the financial world, the broker is the operator of the stock broker , that is, the individual who is directly involved in buying and selling stocks and shares. In the case of working with stocks, you are also called a stockbroker. In Brazil, the profession is formally designated as an Autonomous Investment Agent and, to exercise it, it is necessary to have a certification.
Anyone who wants to invest in stocks cannot act directly on the Stock Market and needs the intermediation of an authorized financial institution, the broker, which operates through its operators.
In this case, the broker is the professional associated with the broker who performs the purchase and sale operations requested by clients.
Even acting for a broker, the broker needs to acquire and manage his own portfolio of clients, earning his income through commissions.
Under Brazilian law, the broker is not authorized to make recommendations for the purchase and sale of shares. This function is performed by brokerage analysts. However, it is the broker’s job to inform his clients about what the latest analysis says, helping them make investment decisions.
When the client is a large institutional investor, they generally already have enough information to make their decisions about buying and selling shares. In this case, it is up to the broker to execute only his orders.
However, when it comes to small investors, the broker can take a role close to consulting. For this, you must be well informed about the analysis of the financial market and know the profile of your client.
The home broker is a system offered by brokers to buy and sell stocks over the Internet . The brokerage firm continues to act as an intermediary for the transaction, but the client executes her orders directly, simply with a registry and a computer.
In addition to allowing the purchase and sale of shares with a few clicks, the home broker system generally provides the quotes and analysis necessary for decision making. It also allows the client to monitor the results of their operations.
The appearance of the real estate agent helped popularize equity investments, as it is more agile and has lower costs. This modality, however, is not without risks. The inexperienced investor may be more vulnerable to the risks inherent in the stock market, since it does not have personalized monitoring by an expert. There are also risks related to virtual security.
Broker in the real estate market
In the real estate market, the broker is simply the real estate agent .
Within this field, the term private corridor is becoming popular, it is used to designate brokers that operate in the luxury segment. These professionals offer an exclusive and personalized service to high-income clients interested in buying and selling real estate.
Broker in maritime logistics
In maritime logistics, the broker is a company that intermediates cargo and ships .
In this case, the broker operates in logistics, chartering and vessel contracting spaces to export and import clients who do not have their own department for this.