Financial Broker

A financial broker is a company or person that acts as the middleman between you and the financial market. In order to buy or sell a stock, for example, you need the help of a middleman.

Middlemen are allowed to place orders on the exchange. They are a service provider and earn based on your activity, called commission. Or might be charging fees. Several brokers that also offer education are Etoro copy trading, Saxo scenarios & IG academy.

The advantages of a financial broker

They provide market research on instruments. They also provide investment guidance and education on product types you might not be familiar with yet.

Note, this is called cross-selling and is done mainly to earn more on you, but also partially to help and diversify your risk.

The change of 2020 up till now

Before 2020, only wealthy and financially knowledgeable people invested in financial products. The WallStreetBets movement and fear of missing out (FOMO) has made investing much more common. If interested, visit their Reddit here.

Unfortunately, not everyone spends the time to educate themselves prior to getting started. By being here, you have already made one step more than most! Continue educating yourself by visiting our page 'What is Financial Investing?'

Alternatively, you can read our FAQ below or browse the website for other glossary terms and posts related to investing. Remember, Investing Guides is here for you, at no cost!

Broker name  Type Review Rating Broker site
Etoro Investor Link 4.6 Visit broker
CMC markets* Mostly Trader Link 4.5 Visit broker
Plus500* Trader Link 4.1 Visit broker
Trading212 Investor & Trader Link 4.1 Visit broker
Bux Zero Investor & Trader Link 4.0 Visit broker
Admiral Markets Investor & Trader Link 4.0 Visit broker
Kraken Crypto Link 3.8 Visit broker
BlackBull* Trader Link 3.7 Visit broker
Fusion Markets* Trader Link 3.5 Visit broker

*If you choose a trading broker, please remember: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Financial Broker definition
What is a financial broker?

A financial broker acts as a middleman between you and the financial market.

Why should I open a financial broker account?

A financial broker account is required to buy or sell using the financial market.

What are the advantages of a financial broker?

Financial brokers provide market research, investment guidance, and financial news. Oftentimes, financial education too.

How do financial brokers earn money?

Financial brokers earn revenue by charging commissions, fees and earning interest on your money called treasury.

Do I need a financial broker?

You will need a financial broker if you intend to buy or sell from financial markets. Otherwise, there is little to no reason.

Who has a financial broker?

Nowadays, many people do, as investing has become far more common.

Best copy trading broker 2022
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