Brokerage activity: what is the basis?

In order to understand and realistically evaluate the brokerage activity in which you plan to implement
your business ideas, you need to have an idea of ​​​​who a broker is.

A broker is a specialist who provides intermediary services between a buyer and a seller in the financial
market. In practice, this means that the brokerage company makes transactions on the market with certain
assets (stocks, securities, etc.) at the expense of clients on the best terms for them.

The broker receives his income in the form of a commission from the amount of the transaction. The
commission is always charged, regardless of how successful the transaction was.

For a brokerage company, this is a clear plus, since it always makes a profit. Why do clients turn to
brokers and are willing to pay a commission? This is a fee for intermediary services, which include
providing access to various reliable exchange platforms, high-quality and timely analytics of the market
as a whole and positions of interest, analysis of current

Nuances when opening a brokerage office

The agency agreement allows you to work under the name of a well-known broker, which reduces the amount
of start-up costs and provides marketing support from a well-known brand. The process of attracting
clients is simplified, since they are happy to work with a well-known broker, of which you are an agent.
But the income received will have to be shared with the broker.

The format of partnership with a large brokerage company and the opening of a branch of this broker in
your region provides broader prospects. You can conduct a full-fledged brokerage service for attracted
clients, earning on commissions from transactions. There are all the tools to develop your own customer
base. But the costs in this format will be much

• rental of premises;
• purchase of office equipment;
• employee salaries;
• office maintenance;
• advertising costs in your area
• office maintenance;
• advertising costs in your area.