Brokerage

Brokerage is the business of acting as an intermediary to facilitate transactions between buyers and sellers. In financial markets, a broker executes orders to buy or sell securities on behalf of clients and may provide research, investment advice, and access to trading platforms. In other sectors such as real estate, insurance, or freight, brokers connect parties to arrange deals and may manage negotiations, documentation, and settlement.

In finance, brokers may operate as full-service or discount. Full-service firms offer research, financial planning, and advisory services for higher commissions, while discount brokers emphasize lower trade costs with limited additional services. Real estate brokers assist clients in buying, selling, or leasing property and may employ real estate agents who work under supervision to represent clients in negotiations and transactions. Insurance and mortgage brokers arrange policies and loans by presenting multiple providers.

Core functions include order routing and execution, price discovery, due diligence, settlement, and custody when applicable; ensuring regulatory compliance; and providing clients with market access and information. Brokers also manage risk, maintain records, and handle client onboarding and account management.

Revenue typically comes from commissions, fees, spreads, or service charges. Some brokers earn interest on client balances or income from securities lending. Fee structures vary by product, service level, and jurisdiction.

Regulation generally requires licensing or registration, adherence to suitability and best-execution standards, anti-money-laundering controls, know-your-catient rules, and periodic reporting. Firms may face capital requirements, audits, and supervisory oversight by securities regulators, real estate boards, or other licensing authorities depending on market.