What Is a Broker? Estimated reading: 1 minute 70 views A broker is a licensed individual or firm authorized to buy and sell securities on behalf of clients. Brokers act as intermediaries between buyers and sellers in financial markets, ensuring smooth trade execution.Types of BrokersStockbrokers – Facilitate the buying and selling of stocks, bonds, and other securities, typically earning commissions per trade.Forex Brokers – Provide access to the foreign exchange (forex) market, enabling currency trading with leverage and spreads.Commodity Brokers – Specialize in trading physical goods like gold, oil, and agricultural products.Real Estate Brokers – Assist in property transactions, connecting buyers and sellers.How Brokers Earn MoneyBrokers generate revenue through:Commissions – A percentage-based fee per trade.Spreads – The difference between the buying and selling price (common in forex).Flat Fees – Fixed charges for executing trades or managing portfolios.Since brokers are regulated professionals, they are legally required to prioritize their clients’ best interests and ensure fair trading practices.
