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 role of the broker is not limited to finding and connecting those interested in a business. There are sectors in which the broker is usually an agent who adds value to the operation, as a kind of consultant , for having extensive knowledge of the market in which he works.
Regardless of the sector, brokers generally act on a commission basis.
The broker is an agent that works in the distribution chain of the industry, making the bridge with the retail trade.
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, having as an example of performance:
- Asset turnover monitoring;
- Development of marketing strategies;
- Help in inventory management;
- Define the right product mix for that specific seller.
In other words, more than knowing the products it represents, the broker also needs to deepen the profile of the buyer. With this, you can offer a more personalized service with the aim of increasing sales.
Broker in the stock market
In the financial world, the broker is the stockbroker’s operator , that is, the individual who acts directly in the buying and selling of securities and shares. In the case of working with stocks, it is also called a stockbroker. In Brazil, the profession is formally designated as Autonomous Investment Agent and, to exercise it, it is necessary to have certification.
Anyone who wants to invest in shares cannot act directly on the Stock Exchange 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 the 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 their clients about what the latest analysis says, helping them make decisions about their investment.
When the client is a large institutional investor, they usually 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 on a role close to consulting. For this, he must be well informed about the analysis of the financial market and know the profile of his 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 the intermediary for the transaction, but the client directly executes his orders, simply with a registry and a computer.
In addition to allowing the buying and selling of stocks with a few clicks, the housing broker system usually provides the necessary quotes and analysis for decision making. It also allows the client to monitor the results of their operations.
The advent of the real estate agent helped popularize stock investing, as it is more agile and has lower costs. This modality, however, is not without risks. Inexperienced investors may be more vulnerable to the risks inherent in the stock market, since they do 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 broker 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 spaces of logistics, chartering and contracting of vessels to export and import clients who do not have their own department for this.