A commission broker is a person or company that charges a fee to facilitate the purchase or sale of a product or service. Because there are so many different products and services to buy and sell, a commission broker’s job description can be quite varied. A license may be required depending on the broker’s location and specific type of business activity. Financial brokers, such as stock brokers, commodity brokers, and investment brokers, as well as insurance brokers, real estate brokers, and mortgage brokers, are the most common types of commission brokers.
A financial broker is a commission-based broker who is compensated for facilitating the purchase and sale of a variety of financial services. Securities brokers, or stock brokers, act as agents for the purchase and sale of securities such as stocks, corporate bonds, options, and commodity futures. Despite the fact that many stock brokers work in offices and that many firms offer online securities trading, some stock brokers are referred to as floor brokers. Floor brokers work on the trading floors of large securities exchange markets, physically carrying out the business of trading securities.
Other financial brokers, also known as investment brokers, provide a broader range of services than stock and commodity brokers. Investment brokers also provide services such as retirement accounts, mutual fund investments, annuities, and money market funds in addition to securities investments. Municipal and government-issued bonds and notes can also be purchased with the help of an investment broker.
An insurance broker is another type of commission broker. Clients can purchase a wide range of insurance coverage through insurance brokers. Auto insurance, health insurance, life insurance, homeowners’ insurance, and renters’ insurance are all examples of insurance. Pet insurance is a relatively new type of insurance that protects domestic animals in the event that they become ill or require surgery.
Real estate brokers are in charge of negotiating the sale of real estate, such as private and commercial properties. Unless they have signed a contract to work as a buyer’s agent, real estate brokers usually represent the seller’s interests. Real estate agents work to get the best terms and lowest possible price for a buyer or the best terms and highest possible price for a seller, depending on their role.
Many buyers must obtain a loan, or mortgage, for a portion or the entire purchase price when purchasing a business or a home. A mortgage broker, who may also work with a real estate broker, can assist in the loan acquisition process. Mortgage brokers represent a variety of banks and mortgage companies, and their job is to help home buyers find the best terms for their needs.