In principle, the term “broker” can be defined as representing an economic operator, either a natural or legal person, who intermediates demand and supply on a financial market, earning a commission for their services.
In the financial field, a broker is a person whose main responsibility is to sell or purchase shares on behalf of clients, whether individuals or legal entities.
At the client’s request, a broker has the necessary expertise to provide advice, that is, to offer additional and useful information regarding the investments the client wants to make with the help of the broker.
In other words, the responsibilities of a broker, regardless of the field in question, are:
- Guiding and complying with their clients’ requirements – thanks to their knowledge, brokers can offer consultancy to facilitate investors’ decisions regarding their desired investments;
- Providing real-time investment details – brokers’ access to the financial market allows them to obtain information related to stock exchanges or other financial markets;
- Managing accounts and executing transactions – this is an essential role of the broker, as they are responsible for properly performing transactions and transferring funds to sellers;
- Transmitting trade orders to clients.
Types of Brokers
Considering the services they offer, there are three main categories of brokers:
- Online Brokers – these operate through online platforms, providing clients with the necessary information very quickly and charging low commissions;
- Discount Brokers – carry out buying and selling transactions with lower commission rates compared to full-service brokers.
- Professional Brokers (full-service brokers) – these brokers offer a wide range of useful services to clients, provide investment advice or help improve their investment strategies;
Depending on the field in which they operate, there are various types of brokers, the most well-known being:
- Stock Brokers – individuals who execute buy and sell orders on financial markets in exchange for commissions;
- Credit Brokers – provide clients with the necessary information regarding loans they intend to take, aiming to obtain loans or financing under the most favorable conditions;
- Leasing Brokers – offer services similar to credit brokers, but often interact with legal professionals or commercial organizations to conclude contracts between the client and the leasing provider of vehicles, equipment, or other assets;
- Real Estate Brokers – responsible for finding potential buyers in real estate transactions and then selling them houses/apartments, office spaces, or other properties;
- Commodity Brokers – intermediaries specialized in transactions on the commodities market who facilitate buying and selling processes between producers and customers (e.g., oil, grains);
- Insurance Brokers – their role is to provide clients with insurance details, mediating between clients and insurance companies.
How Much Does a Broker Earn in Romania?
Regarding the income earned by brokers for the services they provide, it should be noted from the outset that brokers receive various commissions, depending on the transactions they perform, the timing of the transaction, and the country where the transactions take place.
Incomes can vary based on several factors, such as: experience and qualifications; client portfolio; market and demand. A broker’s salary can increase several times in a single month due to the commissions earned on each completed transaction.