In order to earn a commission after the trade is completed, brokers organize transactions between buyers and sellers.
Brokers that take on dual roles as buyers or sellers are considered primary parties to the transaction.
Neither function should be mistaken with that of an agent, who represents the primary party in a transaction.
Market data and market research can be provided by brokers.
Brokers are often not allowed to represent both the buyer and the seller at the same time.
Brokers are required to have the resources and tools necessary to connect with as many buyers and sellers as they can.
They subsequently scrutinize these prospective buyers or sellers to find the best fit.
On the other hand, an independent producer, particularly one who is new to the market, is unlikely to have the same access to clients as a broker.
The cost of hiring a broker is another advantage; they may be less expensive in smaller markets, with smaller accounts, or with a more restricted selection of goods.
Last Updated on 1 year by pinc