The Important Role of Brokers

Mortgage broker: mortgage brokers guide customersexchange market. Forex brokers make money from
through the process of selecting a suitable mortgagepip or "spread." A spread is the minimum price
package with competitive package offers. They alsoincrease in currency. For instance, in Euro/US Dollar, a
offer financial advice on mortgage and property.shift from 0.9007 to 0.9008 is one spread. In US
Their job is to find a mortgage package that meetsDollar/Japanese Yen, a shift from 127.40 to 127.41 is
the borrower's needs, and to help the client processone spread.
and complete their mortgage application form. In theStockbroker: a stockbroker is a person or company
United States, mortgage brokers negotiate overwho buys and sells stocks on behalf of another
80% of home loans issued. Banks go through brokersperson or company, and tries to match up buyers
to effectively outsource the job of finding andand sellers. Many people seek the advice of and pay
qualifying borrowers.for the services of a stockbroker to help them in
Real estate broker: real estate brokers finds buyersmaking informed decisions about their finances with
for those wanting to sell real estate and finds sellersthe knowledgeable and interactive guidance of a
for those wanting to buy real estate. Real estatelicensed stockbroker.
brokers help sellers market their property and sell itInsurance broker: insurance brokers source contracts
for the highest possible price; they also help buyersof insurance on behalf of their customers. An
purchase property for the best possible price. Onceinsurance broker will help you to choose the best to
the broker successfully finds a buyer, the real estatefit your needs.
broker receives a commission for his or her service.An investor looking for an investment avenue will
In the U.S. a 6% commission is usually the case forbenefit greatly from using a broker, as brokers tend
residential real estate and is usually paid by the seller.to be more up-to-date with trends and happenings in
This is generally split 50/50 between the listing agentthe market. Also as per law the broker has a
and the selling agent.fiduciary duty to advise the customer in the
Forex broker: forex brokers are firms or individuals,customer's best interest.
who assist individuals or firms to trade in the foreign