A broker is an individual or firm that acts as an intermediary between buyers and sellers in financial markets. Brokers facilitate the trading of financial assets such as stocks, currencies, commodities, and derivatives. Their primary function is to execute buy and sell orders on behalf of clients, whether they are individual traders, institutional investors, or corporations. Brokers are essential in providing access to markets, offering a platform for trading and often giving valuable advice or insights to their clients.
As a financial intermediary, a brokerage firm acts as a middleman, connecting those who want to buy and sell assets. They work with exchanges and other financial institutions to ensure smooth transactions. Brokerage firms can offer a wide range of services beyond executing trades, such as portfolio management, investment advisory services, and financial planning. They also serve institutional clients, helping businesses and large investors make significant financial decisions. The role of the broker is crucial because they ensure that markets function efficiently by matching supply and demand.
