brokering

A broker is an intermediary who facilitates transactions between buyers and sellers. By bringing interested parties together, negotiating terms, and handling related documentation, brokers help markets function more efficiently. In many cases, they do not take ownership of the goods or financial assets themselves; they earn fees or commissions instead.

Brokers provide access to markets, information, and expertise that clients may lack. Their work often includes assessing counterparties, conducting due diligence, arranging financing or risk management tools, and coordinating trade execution, settlement, and custody where appropriate. In securities markets they typically act as agents for clients rather than principals.

Different kinds of brokers operate in various sectors. Financial brokers handle stocks, bonds, foreign exchange, or derivatives; real estate brokers connect buyers with property sellers and manage negotiations and closing tasks; insurance brokers compare policies and secure coverage for clients; procurement brokers source goods for organizations; recruitment brokers link employers with candidates. Online platforms also function as broker services by matching demand and supply.

Compensation usually comes as a commission or fee, often a percentage of the transaction value or a flat rate. Some brokers charge retainers or success fees, and disclosure of commissions is common practice to avoid conflicts of interest. In some markets brokers are paid by the trade counterparties rather than the client.

Brokers are subject to licensing, registration, and regulatory oversight that varies by jurisdiction. They must comply with anti-fraud, anti-money-laundering, and know-your-customer rules, and many markets impose duties such as best execution and client confidentiality. Ethical brokers disclose conflicts of interest and act in the best interests of clients.