All You Need to Know About Broker
A broker is an agent or company that interconnects a buyer and a seller. In Portuguese, the term broker means “broker” or “intermediary”.
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 that adds value to the operation, as a kind of consultant, for having extensive knowledge about the market in which he works.
Regardless of the sector, brokers usually act by paying commissions.
The broker is an agent that works in the industry’s distribution chain, 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 usually works in a closer way to the client, having as an example of performance:
- Monitoring of goods turnover;
- Development of marketing strategies;
- Help in inventory management;
- Defining the appropriate product mix for that specific seller.
That is, more than knowing the products it represents, the broker also needs to deepen the profile of the buyer. With this, it can offer a more personalized service aiming at increasing sales.
Broker in the stock market
In the financial world, the broker is the operator of the securities broker, that is, the individual who acts directly in the purchase and sale 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 an 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 that performs the purchase and sale operations requested by the customers.
Even acting for a broker, the broker needs to acquire and manage its own client portfolio, making its 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, is a function of broker inform their customers about what they say the most recent analyzes, helping them to make decisions about your investment.
When the client is a large institutional investor, in general he already has enough information to make his decisions about buying and selling shares. In this case, it is up to the broker to only execute his orders.
However, when dealing with small investors, the broker may assume a role close to the consultancy. For this, you need to be well informed about the financial market analysis and know your client’s profile.
The home broker is a system offered by brokers for buying and selling shares over the internet. The brokerage firm continues to act as an intermediary for the transaction, but the client directly executes his orders, simply having a register and a computer.
In addition to allowing the purchase and sale of shares with a few clicks, the home broker system usually provides the quotes and analyzes necessary for decision making. It also allows the customer to monitor the results of their operations.
The emergence of the home broker helped to popularize investment in shares, 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, as he does not have a personalized accompaniment by a specialist. 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 broker.
Within this field, the term private broker, used to designate brokers who operate in the luxury segment, is becoming popular. These professionals offer 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 contracting spaces on vessels for exporting and importing customers who do not have their own department for this.