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Broker and its functions in the securities market

by dublindecor

The securities market in Ukraine appeared relatively recently, and with it the profession of a broker has become an relevant and demanded for our country. For most people, this profession is seen very prestigious and profitable, but is it really so? And what skills and knowledge should be possessed to become part of this mysterious securities market?

The broker can be both an individual and a legal entity. His duties include the provision of intermediary services between the seller and the buyer in the market. Only an experienced financier can apply for this position. Only to such a person customers can entrust operations with securities. The broker does not receive a fixed salary at the end of the month, he makes his profit as a commission – a fixed percentage of transactions concluded. The broker does not always act in the interests of his customers, he simply fulfills their instructions and puts up applications for the market.

In addition to conventional brokers, there are Internet brokers that provide intermediary services on various trading exchanges on the World Wide Web. Such financiers enough tablet to buy Ukraine for their sales are one of the first places in the world, and access to a constantly changing situation in the stock market will be provided. The essence of their work from moving from the real world to virtual does not change.

Many people may have a logical question: why people whose hands are shares, bonds and other securities cannot carry out operations on the exchange themselves? The answer lies in the initial formation of the structure and work of the domestic securities market. At first, an exchange was created for the trading of securities, and only then its founders began to select intermediaries to organize trading on it. In the West, the situation looks completely different, because the circle of intermediaries was originally formed there, and later, as a result of the initiative, the stock exchange arose.

Recently, brokers, in addition to the main services, began to provide additional. The most popular of them is the Brockie shoulder service, when the trader (trademark on the exchange) is issued credit funds on bail. The trader uses these funds for trading on the exchange and, with the right calculation, can repeatedly increase the money received. The main advantage of such a service is that borrowed funds are many times higher than the trader’s own capital, and a large key or serious guarantees is not required to obtain them.

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