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!
A financial broker acts as a middleman between you and the financial market.
A financial broker account is required to buy or sell using the financial market.
Financial brokers provide market research, investment guidance, and financial news. Oftentimes, financial education too.
Financial brokers earn revenue by charging commissions, fees and earning interest on your money called treasury.
You will need a financial broker if you intend to buy or sell from financial markets. Otherwise, there is little to no reason.
Nowadays, many people do, as investing has become far more common.