A broker is an individual or party (brokerage firm) that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Distinguish agent: one who acts on behalf of a principal.

In general a broker is an independent agent used extensively in some industries. The prime responsibility of a broker is to bring sellers and buyers together. Therefore, a broker is the third -person facilitator between a buyer and a seller. An example would be a real estate broker who facilitates the sale of a property.

Brokers also can furnish considerable market information regarding prices, products and market conditions. Brokers may represent either the seller (90 percent of the time) or the buyer (10 percent) but not both at the same time. An example would be a stockbroker, who makes the sale or purchase of securities on behalf of his client. Brokers play a huge role in the sale of stocks, bonds and other financial services.

There are advantages to using a broker. First, they know their market and have already established relations with prospective accounts. Brokers have the tools and resources to reach the largest possible base of buyers. They then screen these potential buyers for revenue that would support the potential acquisition. An individual producer, on the other hand, especially one new in the market, probably will not have the same access to customers as a broker. Another benefit of using a broker is cost — they might be cheaper in smaller markets, with smaller accounts, or with a limited line of products.

Before hiring a Broker, it may be considered prudent to research the requirements relating to someone using the title. Some titles, such as Real Estate Brokers, often have strict State requirements for using the term, while others, such as Aircraft Brokers typically have no formal licensing or training requirements.

Read more about Broker:  Etymology, Types of Brokers

Other articles related to "broker, brokers":

Car Brokers In Australia - Alternatives
... With the Internet's popularity ever increasing car brokers are becoming less common ... Today we see more online classifieds/broker type systems ... Online web applications have almost completely replaced the broker ...
Broker, Lewis
... Broker or Brocair is a small hamlet next to the village of Portvoller and Portnaguran on the Eye Peninsula located on the east side of the Isle of Lewis ...
She Knew All The Answers - Cast
... as Inventor Francis Compton as Tompkins Dick Elliott as Broker Selmer Jackson as Broker Forbes Murray as Broker Roscoe Ates as Gas Station Attendant Chester Clute as Butter and Egg Man George Lloyd as Cop ...
Broker (disambiguation)
... A broker is a party that mediates between a buyer and a seller ... Broker may also refer to Broker, Lewis, a small hamlet in the Outer Hebrides of Scotland The Power Broker, 1974 biography of Robert Moses The Broker, a novel by John Grisham Information broker, a person or ... Broker, a Telugu movie released in 2010 In computing Service-oriented architecture (service broker), software which mediates between a client objects ...
Lightspeed Financial - Awards
... Best Broker for Frequent Traders, Barrons' 2013 #1 Broker for Active Trading 2013 CTO Scott Ignall named to The Trading Show's Top 21 CTOs in North American Electronic Trading 2013 ...