Broker
A broker is an individual or firm that acts as an intermediary between a buyer and seller. Brokers are professionals who are licensed to manage the purchase and sale of financial products such as stocks, bonds, mutual funds, and other investments. They provide advice and guidance to their clients on the best investments to make, and they execute trades on their behalf. Brokers are typically compensated through commissions or fees.
History of Brokers
The concept of brokers dates back to the 17th century, when brokers were used to facilitate the trading of commodities such as grain, wool, and other goods. Over time, the role of brokers evolved to include the trading of financial products such as stocks and bonds. In the 19th century, brokers began to specialize in certain areas, such as stocks, bonds, or commodities. Today, brokers are regulated by the Securities and Exchange Commission (SEC) and must adhere to strict rules and regulations.
Comparison of Brokers
| Broker | Commission | Minimum Deposit |
|---|---|---|
| Broker A | $5 per trade | $500 |
| Broker B | $7 per trade | $1,000 |
| Broker C | $10 per trade | $2,500 |
Summary
Brokers are professionals who provide advice and guidance to their clients on the best investments to make, and they execute trades on their behalf. They are typically compensated through commissions or fees. For more information about brokers, you can visit the websites of the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA).
See Also
- Stockbroker
- Investment Banker
- Financial Advisor
- Mutual Fund
- Bond
- Stock
- Options
- Futures
- Commodities
- Hedge Funds
