Broker refers to a legally established brokerage organization and individual who, as a contract intermediary, provides information, opportunities and conditions for the client to conclude a contract when the client concludes a contract with the other party, or signs a contract with the other party on behalf of the client in anonymous transactions and obtains commissions from it.
Brokers can be divided into two categories: brokers between traders and clients or agents. The former only serves professional market makers, while the latter serves institutional or individual investors.
Extended data:
Action mode
1. Intermediary refers to the commercial behavior that brokers provide information and conditions for both parties to a transaction, and the media serves as a bridge for both parties to successfully trade. This is a main form widely used in brokerage behavior. It is characterized by a wide range of clients, but the service level is shallow, and there is a lack of long-term fixed cooperative relationship between brokers and customers.
2. Bank bill refers to the commercial behavior of a broker who is entrusted by the principal to trade with a third party in his own name and bear the prescribed legal responsibilities. Bookkeeping is similar to self-management in form, but the broker does not obtain the ownership of the traded goods. He conducts activities for the benefit of clients, and as a broker, he only gets commissions from clients.
3. Agency refers to the commercial behavior that the broker deals with a third party in the name of the principal within the authorization authority, and the principal directly bears the corresponding legal responsibilities. Agency in brokerage activities belongs to commercial agency activities in a narrow sense.
Reference source-broker