What is a Broker?

Welcome to the Investors Trading Academy talking glossary of financial terms and events.
Our word of the day is “Broker”
A broker is a person or firm that conducts transactions on behalf of a client. Some brokers only conduct transactions while others also offer different types of investment advisory services. Brokers derive their profit from commissions on orders given.
That is, they usually collect a percentage of the value of each transaction, though some charge flat fees. Clients may give orders in a variety of ways. One may meet with a broker, call on the telephone, or give orders over the Internet. Brokers handle two main types of brokerage accounts: advisory accounts and discretionary accounts. Brokers are only allowed to conduct transactions on advisory accounts on the specific orders of the account holder, or under very specific instructions.
On the other hand, they have much more leeway over discretionary accounts, conducting transactions not prohibited by the account holder in accordance with the holder's investment goals and the prudent man rule. In practice, most brokerage firms are in fact broker-dealer firms.

By Barry Norman, Investors Trading Academy

[nasonthebeat]

I heard the whole thing and at the end of the video I had no idea what he just said

[theoofer]

Ok guys a broker is basically an agent who may be in charge of stock and advertisement and he basically gets a large percentage of the overall stock, 4 to 10 percent.

[benno]

How many times do I have to watch this for my brain to understand.

[dustinwhitehair]

All these people saying they still have no idea what a broker is. It's litterally defined in the first sentences of the video

[snowlife]

I still don't know what it means -_-

[roastbeef]

A broker buys and sells stuff for their customers

[djcastillo]

That's why most people aren't good at advanced arithmetic . Expert don't know how to explain complex concept to newbies 🤦‍♂️