In short, a broker is an individual or firm buying and selling on behalf of other people or firms. In addition, a broker is able to arrange transactions between a vendor and purchaser. When a deal has been made between both parties, a commission is paid to the broker for their service. Brokers can also act as purchasers or sellers, making them the principal party to the deal.
People or agencies make use of brokers because of their expert knowledge of specific markets. Oftentimes they also have connections with prospective accounts and the tools at hand to reach a wide base of buyers. Screening potential purchasers for revenue that would support the potential acquisition is also often part of the job. Overall, they know all the ins and outs of their market and are therefore able to act as agents for their customers.
To acquire the title of broker, a number of factors must be taken into account. The requirements for using the title can differ per country and market. In real estate, for example, there are rather strict requirements to be met when an individual or firm wants to use the term ‘broker’, whereas some other industries use the term much more freely and frequently.
Brokers work within a wide variety of private industries, and typically work within a company’s sales department. They report to sales managers and supervisors. The role of a broker is often seen as starting point for a career in sales, yet some choose to develop within the field of brokering. The job forecast for brokers differ per specialty and industry.
You find brokers in a wide range of industries, each with their personal challenges and opportunities. Most brokers work on behalf of a sellers, but some represent buyers. It is not possible to represent both since there would be a conflict in interest.
Brokers come in all shapes and sizes, but they can be separated into two major types; principal brokers and agency brokers. Principal brokers operate dealing desks; they execute customer trades and hold the resulting positions until the customer is trading out. However, this construction is prone to potential interest conflicts such as the broker profiting when a customer’s position is lost.
Agency brokers operate in ways that are similar to agents operating in trading stocks. The broker acts as an agent to the customer, executing transactions on e.g. an exchange. In this model, the broker and the customer’s interests are closely aligned.
To attain a career as a broker, it is useful to start an education in business, management, finance or mathematics. But an education in a different field would still allow you to pursue a career as broker. Of course, following an education at a specialized business school or institution will give you a greater advantage and a head-start in terms of knowledge.
Even though the role can be fulfilled by many different types of people, some qualities are beneficial to this role:
Similar to the role of a trader, there is no clear cut education that prepares you to be a broker. However, it is important to be a graduate to enter a career in trading, as is decent knowledge of commerciality, finance, economics and/or business. An internship might also be beneficial to start a career in sales since it offers an entry into a business that might offer long-term perspective. There is more than one way to achieve a career as broker, however, it is advised to keep some things in minds when planning your steps. Next to a relevant education, additional licensing, training and classes might also increase your chances.
In order to work as a broker, a position at a licensed company is necessary. To be licensed as a company means a company is allowed to transact business in all areas they operate.
As a broker, you have plenty of job opportunities worldwide and in different markets. Currently we have several positions vacant in the following countries/regions:
While there are a lot of countries that you can work in, there are also a lot of different markets that you can become one. The list below offers an overview of the specific markets in which we currently have vacant positions.
As a broker, your monthly salary will probably be around €2.500,- to €7000,-. Of course, this will differ per market and position and does not include the bonuses. Also, your experience level will influence your salary, as does your level of skill.