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What is a broker and ​​trading broker does? What different types of brokers exist? Get to know all the exciting information about brokerage. The notion tells us that the sphere of brokerage covers services such as having a loan, investing, buying real estate, etc. To efficient operations conducted between buyer and seller, there is a third party that finds, helps, and connects them. Such kind of activity is performed by a broker who earns from a commission taken for mediation services.

Risk Warning

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.



Features We Like

Trusted Partner

  • Intuitive Social Trading Platform
  • Low Fees
  • Licensed Broker

Trusted Partner

  • Demo account is present;
  • Broad range of educational and learning tools;
  • Low deposit: from $50;
  • Free account opening.

Trusted Partner

  • Low Forex CFDs taxes;
  • Special dividends and bonuses;
  • Low deposit: from $100;
  • Withdraw taxes is $0;
  • Demo account is present.

Trusted Partner

  • No trading, account, deposit and withdrawal fees;
  • Low deposit: from $10;
  • Bonuses: promo codes, Traders Union gifts, deposit and trade bonuses;
  • Operating auto trading bot;
  • Demo account is present.

Trusted Partner

  • Welcome bonuses: from 1 to 12 stocks that value up to $30.000;
  • Demo account is available;
  • No fees for crypto, ETFs, equities, OTCBB trading;
  • The trading platform is flexible;
  • Superior regulation.

Trusted Partner

  • Minimum deposit: from $5;
  • Stop out/Margin call: 50%/100%;
  • About 1300 trading instruments;
  • Demo account is available;
  • There is a VPS service.

Trusted Partner

  • Demo account is available;
  • 1.000 spread betting items;
  • Over 2100 assets to trade;
  • Free educational tools;
  • Superior regulation.

Do you need to be a legal person to operate as a broker? Not only legal entities can perform such activities, but also individuals.

Mediation on the market is a very important and mindful performance. A broker should solve all clients’ issues by taking fees for executed services. The extra operations include lending to clients for margin trades, providing information support about the status of trading platforms, etc.

Why Global Financial Brokers Are Important for the Market?

Indeed, broker businesses bring a more comprehensive action besides mediation. Without agents, the financial market itself would not exist. For example, the best stock brokers in the USA are responsible for massive operations that allow for improving global transactions and changes in the market.

Functions of a Brokerage

The main function of a broker is to solve the client’s issues for a fee. Nevertheless, there are other broker processes existing today. Brokers can:

  • Manage trades on the financial stock markets at the expense of the customer and on his behalf.
  • Deliver information support about the status of trading platforms, sending information about quotes and trading instruments.
  • Supply data about other market players, making the proper decision for the client to perform the transaction
  • Giving clients access to a trading account and the online trading platform to do selling and buying assets;
  • Lending to customers for margin operations.
  • Keeping and securing customer data.
  • Making a technical background to make exchange operations.

What Types of Brokers Exist?

Full-service brokerage

Such mediators give a wide range of pro services to clients:

  • equity analysis;
  • investment support;
  • ax tips, etc.

Discount broker

Discount brokers are US, EU, Asia, and UK stock brokers that act as buyers and sellers of orders at reduced commission stakes. Generally, such activity is performed by UK and US stock brokers.

Online brokers

Brokers trading online is a specific branch of the global brokerage. They have a brokerage account or even make complex trading using platforms and generating accounts for traders to perform digital investments and operations with assets online (online stock trading, commodities buying and selling, etc). Broker accounts have a broader range of functions and give more potential to operate successfully on the market.

How does online trading work?

With the development of the internet and executing digital investing, buying, and selling online, brokerages have come to the next level. The main benefits of online trading are low commissions, availability, global operations, speed, and international security.

Specializations of Brokers

With the development of the market, new specializations of brokerage emerged. Right now, there are various specializations of brokers:

  • index brokers;
  • credit brokers;
  • stock brokers (they are in high demand recently);
  • leasing and loan brokers;
  • investment brokers;
  • insurance brokers;
  • indices brokers (US indices brokers particularly);
  • real estate brokers;
  • business brokers.

What Next?

On, you may find information about the best online stock brokers and read about news concerning recent news in various areas connected to trading and brokerage. Also, there are topics about the best broker to invest in index funds, to buy and sell digital investments and so much more!

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