In its most general form, brokerage service is a complex of marketing communications and involves the provision of services for trading in securities and other assets, listing in trading networks, training and advising on conducting transactions with them, assistance in choosing a trading strategy and creating an effective stock portfolio. At the same time, shares and other assets owned by the client, on whose behalf transactions are made with them, are transferred to them under the management of a broker. A person or organization that implements a complex of marketing communications must have a license to conduct brokerage activities.
Today, unfortunately, there is still a judgment in the public mind that savings can only be reliably saved if they are located somewhere at home. This is a deeply erroneous idea, because now, in a period of economic instability, money lying “under the pillow” can depreciate almost instantly. At the same time, there are quite a few ways to not only save money, even in such an unstable time, but also significantly increase your capital, which is what the large trading networks, in particular, are doing, using brokerage services.
One of the most effective is to become a participant in operations on the exchange. How can I do that? The simplest answer is to become a shareholder and take part in exchange trading on your own. But this will require serious specialized knowledge, without which it is very difficult to succeed on the exchange. An important role is played by the experience that comes over the years of work in this financial and economic segment. Right here, quite by the way, I will turn to a company providing brokerage services.
The undoubted advantage of brokerage services is that it is a whole complex of marketing communications, and on the exchange you can get a higher return on assets than when they are placed in a bank familiar to us. Well, the main disadvantage of brokerage trading is that there are higher risks of ensuring the profitability of securities. There are purely subjective risks associated, for example, with the choice of a brokerage company and a broker, and a broker's choice of a trading strategy.
As you know, brokerage services are carried out at tenders on stock exchanges, which are electronic platforms for transactions with various assets. There are two of them in Russia - MICEX and RTS. Most of the transactions are carried out on the MICEX, but on the RTS there is an urgent section for conducting futures trading. The essence of the auction is that persons who want to sell shares submit applications to the system, after which they are automatically compared and, if the requirements of the seller and the buyer are met, are also automatically satisfied.
A brokerage company that provides a range of marketing communications and, among them, transaction services, earn on a percentage of turnover, commission, or by setting a fixed price for services. Many brokerage companies today provide their customers with a list of diverse brokerage fees at various sites. These are plans for transactions on the MICEX SE, RTS, St. Petersburg, tariff plans for transactions on the RTS derivatives section, tariffs for information and operational services, and custody services.
Brokerage services in the securities markets are carried out at tariffs, which are determined by the value of turnover per trading session. According to this principle, the tariff plans of most major brokers in the national asset market are built, which build their tariff policy taking into account the greatest efficiency for their customers.