What is Broker?
Broker is an independent person or a company playing a middleman role in trade, stock exchange and monetary bargaining.
Brokers make deals on behalf of clients and on their own behalf but at the expense of a trustee.
Brokers get certain profits for mediation between sellers and buyers of securities, goods, precious metals etc. this amount of money is fixed according to both sides agreement or according to stock exchange committee tariffs.
- A person paid a fee or commission for executing buy or sell orders for a customer. In commodity futures trading, the term may refer to: (1) Floor Broker – a person who actually executes orders on the trading floor of an exchange; (2) Account Executive or Associated Person – the person who deals with customers in the offices of Futures Commission Merchants; or (3) the Futures Commission Merchant.
- Often referred to as an agent, brings buyers and sellers together for a commission paid by the initiator of the transaction. Brokers do not take market positions.
What is Futures Broker?
Futures broker is a financial intermediary, for and on behalf of a client engaged in the purchase and sale of securities (futures contracts, options).
Stockbroker is only an intermediary and in all situations, working with regulated exchange markets, it is controlled by the regulator, in part of compliance with trade regulations, and customer service rules.
Assets acquired by the broker on behalf of his clients, cannot be the property of the brokerage company and all assets of the company and its customers are always placed on separate accounts.
For services a broker gets a commission and does not act as a party (counterparty) of his client in the transaction.
This means that the broker is an organization that brings its customer directly to the exchange.
And exchange is a place where the price is formed in a democratic way, and this price is one, and is known around the world at any time.
In case of possible abuse of a broker with price indicators, these actions can always be challenged in the controlling bodies.
A broker under no circumstances can give his price or quotation to the client, he must issue price and exchange quotation and bring the order of the customer directly to the exchange trading.