A broker is an individual or firm that is licensed to buy and sell financial assets like stocks, bonds, commodities (futures), and currencies on behalf of clients. Brokers act as intermediaries between buyers and sellers in financial markets, facilitating trades in exchange for a commission or fee.
There are different types of brokers, including:
- Stock Brokers: Specialize in buying and selling shares of stock on various exchanges.
- Forex Brokers: Facilitate currency trading in the foreign exchange market.
- Commodity Brokers: Deal in physical goods like gold, oil, and agricultural products.