What is a broker and how does it work?

What is a broker? A broker is a person or company authorized to buy and sell stocks or other investments. If you want to buy stocks, you will almost always need a broker — essentially, a middleman — to place those orders on your behalf. These days, many people open a brokerage account with online brokers rather than working with a person.

What is an example of a real estate broker?

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.

What is the difference between an investment broker and a mortgage broker?

Investment brokers bring together purchasers and sellers of investments. In most countries, they need to have a license to act on behalf of buyers-sellers of stock. Mortgage brokers act as intermediaries. They broker mortgage loans on behalf of people or businesses.

What is the difference between a broker and a full-service broker?

A broker can also refer to the role of a firm when it acts as an agent for a customer and charges the customer a commission for its services. Discount brokers execute trades on behalf of a client, but typically don’t provide investment advice. Full-service brokers provide execution services as well as tailored investment advice and solutions.