Broker Definition - What it is, Meaning and Concept

Definition of Broker
The term broker can be used in different ways.  In the field of economics , the person or company that acts as an intermediary is called a broker , linking sellers with buyers in exchange for a commission. An insurance broker , in this framework, links insurers with individuals who can become their insured.

It is known as runner bag to the natural or legal person to whom they hire to perform advisory work, investment or trading of securities in certain commercial and financial markets. To be able to register in the securities superintendence and exercise this activity, first of all it is necessary to pass an aptitude test and provide proof of asset solvency.

In other words, we can say that stockbrokers are financial consultants to which certain companies and individuals go to receive advice before embarking on risky investments.

Among the careers that are recommended to get a job as a stockbroker are the following: business administration, accounting, mathematics, finance and economics . In addition, it should be noted that the more prestigious the university, the more job opportunities will appear.

Before completing the studies, it is always appropriate to seek internships in brokerages to gain experience and have a more attractive resume. Future success depends on this step , although many prefer to do postgraduate studies and raise money to become more "reliable" candidates. As in almost all aspects of life, luck and chance play a fundamental role in this case.

The secret of a good stockbroker is in his vision, in his intuition, and for this a constant training is necessary , beyond the academic one. The title is just a key to a good job interview, but success will only come to those who try harder, read, look and learn at every step. The process of learning a subject never ends: the more we know, the more "holes" we notice in our knowledge.

A broker can also be a region made up of zones that share certain characteristics. That is the case of a biological broker , a protected area so that certain species can recover. Other brokers of this type are road brokers (traffic lanes with specific conditions) and air brokers (routes that aircraft must follow).

The covered galleries that are developed around a patio and the brokers of different constructions albrokerso receive the name of a broker.

Brokerage Definition, What is brokerage? Definition of brokerage and Brokerage Contract

Definition of Brokerage
In the world of finance, brokerage is a kind of commission or rate that a stock professional, called broker , applies to a company or someone interested in the investment to provide a service. The brokerage is established with a special contract called "brokerage contract" . This contract is concluded between a professional person in finance and investment and the person interested in accessing an asset.

It is very important to differentiate the brokerage from a commission , since a broker may not demand payment of this fee, but will simply charge his client a commission for the work of operating with assets. In a simple way, the brokerage allows access to the asset operations service and the commission is used to pay for the services that the broker executes in the stock market .

The fact that a broker asks for a broker or not depends in part on the type of market you want to access or the type of assets with which you want to operate , because each of them will have different requirements.

Differences between the commission contract and the brokerage contract
There are differences between the two contracts that are signed with a specialist in the stock market that have to be known by the interested party:

Commission contract : acting on its own behalf. The broker will operate according to their specialized knowledge and performing the appropriate actions, always adapting to what the client wants.

Brokerage contract : the broker executes the shares always following the client's will. The broker will only perform activities that facilitate access to the stock and asset markets, but will not act on his own behalf. Thus, the broker will advise at all times on the most beneficial operations that the client can obtain.

Brokerage concept
Brokerage is a frequent activity in commerce, and is to act as an intermediary or facilitator in business operations , bringing those who demand a product to those who offer them, without a mandate from any of them, receiving a percentage of the amount of the transaction as payment for its management, which also receives the name of brokerage or commission.

In article 1345 and following of the new Civil and Commercial Code of the Argentine Republic , valid since mid-2015, the brokerage contract is defined, which is given between the broker, and the parties involved in the business. The broker is the intermediary or mediator, who, without having a relationship of dependence or being a representative of any of the parties involved in the business, intervenes in its negotiation and conclusion.. Qualification is required to act in the brokerage, and can be both physical and legal persons. The broker can act for both parties, receiving the commission of each of them, or each party can have their respective broker and be paid separately. The commission must be paid if the broker has fulfilled its management, even if the business is not held due to external circumstances or the will of one or both parties. Only a commission is not paid, if the suspensive condition to which the business is subject is not met, or if the business is canceled due to unlawfulness of the object or personal conditions of the parties.

It is very common to use this brokerage contract in real estate transactions, where those who want to sell their property (land, house, department or business premises) leave it to the broker to search for potential interested parties, and these through the Brokers know the offers and hire with greater confidence making sure that they will not be deceived in the transaction , for example that they will not sell a real estate encumbered or affected by any measure that harms them.

Stock brokers , or brokers , are the intermediaries between buyers and sellers in the negotiations of transferable assets . It may have a natural or legal personality and is recognized by the stock exchange , for them to carry out this activity.

The functions of the stockbroker are based on the advice of clients, trying to offer the best return on their investments. You can act as a representative of a company , and declared by this company (can not work with other companies), or as an advisory services company.

A broker always operates according to the interests of his clients. Given that direct intermediation between buyers and sellers is not viable, the  broker represents the two parties and the prices are negotiated according to the supply and demand of the different assets that exist.

For all this, the stockbroker is required a loyalty, transparency and credibility with their customers. The salary of the stockbroker is based on the commissions he receives for each transaction, although he can also charge fixed income. To do this, you must make a brokerage contract in which your fees are established.

Personal Data Broker
What is a "Data Broker"? Business Models based on Personal Data
Throughout different articles we have dealt with the content of the RGPD as a basic rule for any business model 4.0 and today we are going to discuss a business model based on Personal Data, the so-called "Data Broker".

What is the "Data Broker"?
The "Data Broker" companies are those whose business model is based on the capture of Personal Data of users of products and services, its structuring and subsequent provision as a business element with a high economic and strategic value for companies.

Where are these data obtained?
This type of company uses different means of obtaining personal data, the most common are related to the provision of services through the Internet or applications with connection to the network that constantly generate data (those that we generate consciously and the metadata - the real oil).

This is the exchange of an online service that the user wants and that the provider provides in exchange for a connection and an unlimited flow of behavioral data, identifying and historical activity among others.

This same model has been used in the access to web pages, through the use of cookies that could collect this data tacitly (until the entry into force of the RGPD ) and apparently detached from the specific user that generated them, which has led to its obtaining without control.

In some countries outside of our environment this has been taken a step further, offering users offline services (cafes, restaurants etc.) without monetary cost, but requesting as compensation the precious personal data.

Another of the models used (and that has a tendency to succeed) is the exchange of personal data in exchange for a small remuneration to the user; a way to obtain passive income for him, a huge benefit for the "Data Broker".