The first recorded cases of semi-authorized transactions occurred in Rome during the time of Julius Caesar. But the term “broker” is from old French. Of course, there are sources that believe the term has an Anglo-Saxon origin, but “broker” comes from the word “broceur” meaning “small trader”.

In the 11th century, the French began to regulate and trade agricultural debt on behalf of the banking community. This is how the first unofficial brokerage system was born.

But everything changed in 1602, when the Dutch East India Company became the first publicly traded business where shareholders could own a part of the business. For four centuries, investing has remained one of the greatest ways to grow wealth and support progress.

Over time, brokers have discovered more areas where they can work to make a profit and help people achieve their personal goals. Thus, the brokerage developed into what it is today.

But let’s go back to our modern times and define the term “broker”. The explanatory dictionary says that it is a stockbroker who mediates the conclusion of commercial contracts or the performance of services.

It sounds complex, BUT, in the simplest terms, a broker is an independent licensed person or institution that buys and sells on behalf of another person (i.e. you, the client). He acts as an intermediary between you and a particular investor. Brokers provide services that any business or individual needs, from insurance to loans, pensions or leasing. They are then compensated in various ways, either through commissions or payment. More specifically, the broker can be paid both by the client to whom he provides brokerage services and by the company to whom he sells the products. Most of the time, it is only paid by one of the parties.

Because the broker is more independent, it has products and services from several companies, not just one. Brokers are able to help you get the best option for your needs. Thus, they have well-crafted investment plans, specially built for you. For example, Personal Broker offers customized solutions for any financial need.

Brokers can sell several products and services, such as:

• Guidance in the maze of private investment or pensions

• Support in the purchase or sale of housing

• Offering a wide range of insurances

Even though not many could afford to work with a broker before, nowadays a broker is essential. This applies especially to those who do not always have the availability to take care of their investments. Fortunately, now, thanks to online brokerage that allows investors to trade at a lower cost, more and more companies or individuals want to access the stock market.

The financial market – in brief

Since we are also talking about the financial market, it would be useful for you to define this term because we will use it again throughout the text. Like any market, the financial market also sells and buys goods, only it focuses more on the purchase, sale and holding of stocks, currencies, bonds and commodities, etc.

It is important to remember that the financial market does not only mean financial exchanges. The role of the market is to:

1. Put your savings to more productive use

2. Determine the price of securities

3. Trade values anytime, easier

4. It lowers the cost of transactions

The financial market is important for those who want to invest or buy, and they will always be treated fairly. It also helps lower the unemployment rate because of the many job opportunities it provides.

There are several categories of financial markets, including money, capital, investment, foreign exchange and other derivatives. As there are many types of financial markets, there are as many brokers. We can distinguish broker from investments, from loans, from Forex, even from real estate.

Now that we have established what the financial market is all about, we can move on to detailing the different areas in which a broker operates.

The financial market is large and rich, offering many services that anyone needs. Because of this, there are different types of brokers and brokerage firms, specializing in a certain field. We can also take into account the different types of services that can be offered by a broker.

Read on to discover the types of brokers and firms, according to two important categories.

According to the complexity of the services

We can categorize brokerage firms by the flow of services offered. Thus, we can distinguish three types:

With full services

They provide various services for their client including financial planning, research and advice. The only downside is that these services are more expensive. This type of brokerage is perfect for those who want to go through the entire process and build a long-term relationship with the broker.

With a discount

I am in complete opposition to full service brokers. They don’t spend much time researching the market, so they don’t give you advice and you’re more on your own. The advantage is the much lower price compared to other brokers. The services of the broker that offers “discount” is most often sought by experienced traders.

Online

Online brokers provide platforms with access to market makers and other necessary resources. The customer has maximum control and flexibility over orders, but does not provide physical office locations.

We can also mention brokers that offer zero brokerage for all trading segments. This is very useful for beginners or experienced traders who find commission unnecessary.

By the field of brokerage

In the following lines, we will tell more about the most important specializations of a broker.

Insurance broker

If you are thinking of buying an insurance policy but don’t know much about HOW to do it, then you can confidently turn to an insurance broker.

The insurance broker makes money by selling insurance to individuals or legal entities. He is the bridge between you and the insurer and can help you every step of the way. Due to the fact that there are many types of insurance, from health insurance to RCA, it is quite a profitable field.

The contemporary broker can help you calculate the insurance premium and select the most advantageous quote on the market. It warns you about the risks you may encounter along the way and always offers you the best solution. To emphasize this aspect better, one of the advantages of working with Personal Broker consists in obtaining significant discounts for our clients’ insurances.

Credit broker

Have you ever dreamed of having a house of your own? Surely this thought has crossed your mind before. The only obstacle in your way, which probably terrifies you, is going to the bank for a loan.

There is a solution for this and that is a credit broker. Thus, it will save you from trips to the bank alone; plus the broker will make sure to show you the best deals and create a long-lasting relationship with your chosen bank.

If you need financing for your future plans, you can choose:

• Imobiliary credit

• First Home Loan

• Credit for personal needs

• Car loan

Together with the broker, you can choose the optimal option for you. Moreover, the credit broker can take care of the efficient organization of your application file. Personal Broker offers you 0% commission for certain services provided.

Real estate broker

Each of us dreams of a house of his own, with a garden, pool, yard and terrace, big enough for the whole family. This is where a real estate broker can help you.

Caution: Not to be confused with a real estate agent. They are two different entities that are mistakenly perceived as the same thing. This confusion stems from the fact that real estate agencies also have properties from multiple sellers in their portfolio. But the differences stop there.

The broker is one step ahead of the agent because they work independently. Moreover, the broker has studies in the field and is obliged to take an exam that certifies these studies. You can learn more about these differences between an agent and a broker by reading the chapter “The difference between a broker and a salesperson”.

But in short, the broker represents you as the buyer/client, while the real estate agent or agency represents the seller. Unfortunately, the real estate market is not very well regulated, so the agency can offer you services as a client. You can contact an agency when you want to buy or rent land or a building, just like a broker. The difference is that the agency will ONLY show you the products they have in their portfolio, and the broker can show you products from multiple agencies. It is in his interest to offer you the best solutions because he represents you.

For example, if you want to rent a house or land, the broker presents you with several offers from different agencies. Thus, you are spared from fruitless negotiations and you stop wasting time. You will get the house you want, without much hassle.

In short, the real estate broker can be a reliable ally.

Investment broker

You may have woken up from time to time to a phone call from a person begging you: “Don’t wait, invest today, the market is down!” When you hear such messages, you don’t know how to hang up the phone faster because, often, these brokers lie to you and want to extort money from you. It’s just that the reality is much different than how it’s portrayed, even in the movie The Wolf of Wall Street.

A real investment broker, like Personal Broker, is the connection between you and the world. He provides goods to buyers and sellers in the stock market. Thus, the customer can buy shares and other securities from stock exchanges.

If you’ve ever thought about starting a profitable personal investment, now is the time to call a broker.

Car leasing broker

You have finally found the house you have always dreamed of. Only there’s one problem: you don’t have any fast transportation to use to get from one part of the city to the other.

This is where a car leasing broker could definitely help you. Thus, you have the right to use a car in exchange for a monthly payment to the financier, known as the leasing rate. Moreover, car leasing is obtained faster. The broker will make sure to guide you to the best option, suitable for your budget and wishes. In addition, Personal Broker invites you to use the leasing rate calculator, just to see how you can fit in.

Next stop: the most spectacular tourist destination you’ve ever wanted to visit.

Where does Personal Broker rank?

Personal Broker belongs to the category of companies with full services, guided by experience, passion and competitiveness. Having brought financial stability to over 10,000 clients, we are proud of the rich portfolio we have. We are ready to find you the best offer. Transparency is one of our strengths, we are honest and motivated to help you. That’s why we also offer you personalized advice, specially created for your needs.

We are experts in effective solutions and are up to date with all the news in the financial world. Moreover, Personal Broker specializes in several areas, those mentioned above, but not only. Thus, Personal Broker deals with:

• Insurance

• Credit

• Real Estate

• Investment

• Car leasing

We are proud to have managed to bring a smile to the faces of many customers through the value for money ratio. And to demystify the fact that full-service companies are expensive, at Personal Broker, the first consultation is free. Following the advice received, you decide whether you resonate with us for a future collaboration. We promise that the professional relationship we will have will be long lasting and productive.

We invite you to talk relaxedly about your financial planning. Learn more about how to create your financial planning here.

How a broker can help you

We could go on and on about the benefits of working with a broker because there are so many. As you could tell from the previous paragraphs, a broker is the bridge between you and the financial market.

He speaks for you and does everything possible to get you the best deal. Thus, we can say that a first advantage of a broker is the fact that it gives you more time to focus on what matters. Say goodbye to walking around, from one agency to another. You will also get rid of stress because the broker will spend his time doing all the transactions, while you can relax with your loved ones.

In addition to the fact that a broker will take care of talking to the company from which they buy services and products on your behalf, they will also try to find the best solution for your budget. He will consult with you before making a decision and will make sure there are no additional costs. A broker will be on your side and help you whenever you need it. He will be with you every step of the way. So you can count on your broker to find the right insurance for you cheaply.

What makes a broker special is the fact that he has access to the market. That’s why you also have access to more resources and services that can help you in the future. They will professionally approach any problem and explain anything you don’t understand. Another important point is that the advice given is unbiased. They won’t take you off guard and you’ll know from the start what to expect.

More than that, the broker is looking to form a long-term relationship with you. That way, he will work closely with you and get to know your needs. Because he knows what the goal is that you want to achieve, you will know what the next step will be.

The difference between a broker and a salesperson

Very often, a broker is confused with an agent. Moreover, many people believe that they are one and the same. Because of this, out of ignorance, people do not choose a broker, even if it is much more advantageous. In fact, most of the world perceives brokers as representatives of insurance companies and others see no difference between a broker and an agent.

The difference is noticeable when you look at who each represents.

The agent sells and buys on behalf of the company they work with. An agent can work with one company or several. Thus, the agent will only sell the products that that company has in its portfolio, whether we are talking about CASCO insurance, leasing, real estate, etc. Collaborating with an agent, you will receive offers only from that business and represents the interests of the company with which it is affiliated. An agent is more limited than a broker because it depends on certain restrictions.

Let’s move on to the broker. As you know, the broker represents the person who wants to buy a service, that is, you. He can collaborate with several companies and no limits are imposed on him. Thus, he can take home insurance from one company, RCA insurance from another and so on. From this perspective, working with a broker is much more advantageous precisely because you get the best that a company has to offer. In addition, this is why the broker can compare solutions and provide personalized advice.

In addition, the broker needs more studies to become a broker and to be able to practice in the chosen field. The fact that the broker passes the exams gives him an advantage over the agent because he is much more trained and has a lot of experience. The broker has a license, which gives him credibility and an independence that the agent does not have. In fact, the agent does not need that independence because it depends on the company he works for. It is limited in execution and cannot give you more than what the company has in its portfolio, unlike a broker. The broker is not limited by the services of a particular company, therefore independence is the biggest advantage.

Another difference is that the broker has a wider range of clients and will be able to direct you to more partner companies. You will benefit from better rates and conditions that will please you.

Now that you know what a broker is, how it can help you and how it differs from a simple agent, here comes the most important part:

Are you ready to start working with a broker?

If so, then you might be wondering which broker to choose. The Romanian market is full of brokers who are competing for your attention. Of course, you choose the broker that you think suits you based on your needs and how much confidence it inspires you. The important thing is that the broker is also there for you, anywhere, at any time. Communication and good understanding are vital elements for the success of your business.

Moreover, they must have credibility and behave professionally. It is best to look for a broker who is unbiased and has a solution for any financial need. Long experience in the field is a good sign that the broker knows what he is doing. Customer reviews and their number is also a suitable criterion for choosing a broker.

YOU are the one who will make the decision. It’s important to listen to your instincts and pay attention to the signs of a trustworthy broker.

Let’s see what a good broker looks like.

Personal Broker has over 10 years of experience in this field and works independently. Since 2007, the financial market has been conquered by our company. With over 50 trusted partner insurers, we are characterized by professional excellence, honesty, loyalty and integrity. Personal Broker is part of the group of companies that make things happen.

Our mission is to continuously assist you during the development of intermediate contracts, providing an objective analysis of the financial market. With this knowledge, we can provide the right solution and reduce the time spent on solving problems that may arise along the way. Time is precious, that’s why Personal Broker helps its clients to save this important resource.

Personal Broker knows all the little secrets in the field of financial services, so it’s worth starting the journey with us.

Sperăm că acest articol a lămurit conceptul de „broker”.

All that’s left is to contact us right now because everyone needs a broker in their life.

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