Brokers are who? What does the broker do?
Every person to some extent at least oncehe used the services of a broker, often even without knowing it. After all, brokers today are too tightly integrated into modern life, their services have become incredibly popular. But not everyone knows who they are. Brokers are intermediaries between a client and a particular company or its representative, and they can also work as a "middle link" between certain individuals. Their work is regulated by several legislative acts.
Now brokers have firmly taken a place in the spheremediation services, so many people turn to them for help, especially when you need to save time, but not money. They always take a small percentage of commissions for their services. As practice has shown, the best brokers are physical or legal, which provide a large list of services with a small cost of work and operational deadlines for the fulfillment of the order.
Sphere of activity of brokers
Depending on the economic sphere of activity, all brokers can be conditionally divided into the following groups:
- Financial brokers are people who are engaged infinancial intermediation related to the circulation of funds. These include stock brokers (brokers), financial analysts, consulting companies and agencies.
- Non-financial brokers are individuals who do notare directly engaged in the processing of financial flows, but can help in the active use of financial resources. This group includes real estate brokers, customs brokers, legal companies, analytical advisory groups, other brokers.
Form of ownership of brokers
Depending on the direction of activitythey can have different forms of ownership. The most common brokers are legal entities, most often private enterprises or joint-stock companies that work on a common taxation system.
Many customs brokers arelegal entities in connection with the specifics of their activities. But stock exchange in most cases - individuals, less often - private entrepreneurs. Such brokers do not work directly with the finances, but they receive their commissions for each successfully conducted operation and work directly with individuals, much less often with legal (due to the peculiarities of taxation on profits).
Features of the activity
Brokers always act as intermediaries betweenspecific persons regardless of the form of ownership. They take the responsibility to speed up the task, help to issue documents, including goods when crossing the border. In doing so, they take for their services a specific amount of money, which is fixed in the mediation agreement, which is signed after the coordination of all the nuances. In such a contract, the following items must be registered:
- The subject of the contract (what exactly should the broker do).
- Cost of services.
- The responsibility of the parties to the contract, their rights.
- Terms of the contract.
- Full bank and legal details of the parties.
Brokerage services can be ordered by each person,taking into account the direction of activity. Their cost may vary depending on the specific situation on the market and must necessarily be fixed in the contract. Only in the case of legal advice or assistance in selling and buying real estate, the cost of the broker's services remains fixed.
Responsibility before the law and the client
Depending on the terms of the contract and the directionbrokers carry administrative and criminal responsibility. The administrative limit is limited to fines or cancellation of the license to provide brokerage services. Such liability is common among insurance brokers, real estate intermediaries or legal advisors. Criminal liability is often used in cases of violations of customs legislation or in the presence of fraud.
Financial brokers mediate insphere of financial services. They work on stock exchanges, they are engaged in buying and selling shares, securities, goods and currencies. The best brokers in this area are companies that trade on the stock market or on binary options. They offer good conditions for their clients, provide trading platforms and are ready to conduct trainings, training for all comers.
What are "binary option brokers"? This term refers to those who are engaged in intermediary services in the sphere of binary options trading. These are high-risk companies, often without certificates or licenses. Brokers who have the necessary licenses for trading in the market of binary options are very few, but they are considered the best.