Broker

A broker is an intermediary who facilitates a transaction between a buyer and a seller. Brokers arrange deals, provide market information, and often handle negotiation and documentation. They typically do not take ownership of the goods or financial instruments involved, earning a client-paid commission or fee for services rendered.

Brokers operate in many sectors. Financial brokers help clients buy and sell securities, currencies, or derivatives and may be registered with regulators and market operators. Real estate brokers assist buyers and sellers in property transactions and may supervise real estate agents. Insurance and mortgage brokers help clients compare products from multiple providers. Freight and logistics brokers coordinate the shipment of goods by connecting shippers with carriers. Each sector has its own licensing, compliance, and disclosure requirements.

Licensing and regulation vary by jurisdiction but generally require passing exams, continuing education, and adherence to fiduciary or ethical standards. In many markets, brokers must be affiliated with a licensed brokerage or hold a regulated license; some also register with exchanges or industry bodies. Transparency, disclosure of conflicts of interest, and suitability assessments are common regulatory concepts.

Compensation commonly takes the form of commissions, often a percentage of the transaction value, though brokers may also charge flat fees or hourly rates. Because brokers influence price and terms, they have a duty to act in their clients' best interests, disclose material information, and avoid misrepresentation.

Historically, brokers emerged to facilitate complex trades before mechanized markets. The rise of online platforms and discount brokers has expanded access to markets and decreased costs, while increased regulatory scrutiny aims to protect consumers and ensure fair dealing.