A broker is an individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. The role of a firm when it acts as an agent for a customer and charges the customer a commission for its services. A licensed real estate professional who typically represents the seller of a property.
A broker's duties may include: The internet triggered an explosion of discount brokers , which allow investors to trade at a lower cost, but don't provide personalized advice. Because of discount brokers, almost anybody can afford to invest in the stock market. Their low fee structured is based on volume and lower costs. Most discount brokers offer an online trading platform which attracts a growing number of self-directed investors. Full-service brokers offer a variety of services, including market research, investment advice, and retirement planning, on top of a full range of investment products.
For that, investors can expect to pay higher commissions for their trades. Brokers are compensated by the brokerage firm based on their trading volume as well as for the sale of investment products. An increasing number of brokers offer fee-based investment products such as managed investment accounts. The broker must make a reasonable effort to obtain information on the customers financial status, tax status, investment objectives and other information that can be used in making a recommendation.
Under the Investment Advisers Act of , RIAs are held to a strict fiduciary standard to always act in the best interest of the client, while providing full disclosure of their fees. Dictionary Term Of The Day. A conflict of interest inherent in any relationship where one party is expected to Broker Reviews Find the best broker for your trading or investing needs See Reviews. Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education.
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