Brokers - who is it? Brokers, they are intermediaries between the buying and selling side. Their earnings are commissions from the transaction. In some cases, brokers act as guarantors of financial transactions. Who is the guarantor? This is an organization or individual that ensures the existence of a condition or factor. This can be either a percentage of the completed operation, or a strictly fixed amount. Today, a broker can be both an individual and a legal entity with a license. By type of activity there are insurance, mortgage, sea, customs, stock brokers. Who is it? Professional financiers, each in their own field. In addition to making purchase and sale transactions, the broker also provides analytical information, the latest news, deposits and withdraws funds in the accounts of traders.
It is possible to provide brokerage leverage, which is a transfer of secured credit money to a trader. In this case, he can use financial resources in excess of the amount of his initial capital. There is also such a thing as online brokers. Who is it? Their difference is only in the fact that they work on Internet exchanges and provide their services through the Web, in contrast to brokers operating directly on exchanges. The work of brokers must be certified by the Federal Service for Financial Markets. Also, each such specialist must have accreditation on the exchange where he serves.
Loan broker
One of the categories of intermediaries is credit brokers. These are brokers between banks and borrowers. They are necessary in order to simplify the process of their mutually beneficial cooperation. A credit broker invites a client to the bank who is ready to conclude a transaction. For this service, he receives from the bank a small percentage of the loan amount as a reward. The broker selects the most advantageous offer to the client, collects a set of necessary documents, negotiates with banks.
Responsibilities of Credit Brokers
Clients of credit brokers are borrowers who need to get a loan, but they do not meet the criteria of existing banking programs. This list includes both individuals and small and medium-sized enterprises. What services does a credit broker provide to its clients? First of all, he analyzes the customer’s business, selects effective lending programs, prepares documents for submission to the bank for consideration, and organizes the transaction process itself.
Brokerage companies
Investment and brokerage companies offer their customers a wide range of services. From customer and technical support to analytical examinations and consulting services. Choosing a brokerage company for trading is a responsible and difficult task. You must take into account the reputation of the organization, terms of trade, the availability of special software and much more. The Otkritie Broker company, for example, has a maximum reliability rating and is a market leader in terms of volume of client operations in the stock market.
Binary options
To date, option brokers are no less popular than Forex brokers. This is a new trend in the Internet that is only gaining momentum. Binary options can offer favorable trading conditions. They represent the purchase or sale of an asset. The profit will be fixed in the event that the auction is successful, that is, at a certain time a certain condition will be met. When the option is successful, the investor receives the income known to him. In case of failure, loses the money spent on the option.
The benefits of binary options
- It is easy to bet, there is no need to have narrow specialized knowledge. A reasonable forecast will be preferable, therefore, you still need to have an understanding of the analysis of the market.
- You can plan a bank roll, because it is always known how much money will be lost in the event of failure and received during a successful operation.
- A low entry threshold of 1 dollar allows you to bet absolutely anyone.
- A decision is made on what to work with. With securities, basic commodities, currency prices.
The disadvantages of binary options
- High level of losses. You can lose up to 90% of your deposit as a result of an unsuccessful transaction. To recover lost funds, you need several successful operations.
- Unable to close the deal ahead of schedule. In classic trading, you can leave the market after seeing a trend reversal. In this case, no.
- Limited selection of time frames.
- There is no leverage. You can only use your personal funds, so with a small capital, it is impossible to get a big profit.
We can say that a binary option is a simplified tool for trading on the stock exchange, which allows every person who has at least a little observation and the ability to analyze information to quickly get a profit with minimal investment.
Binary brokers made these options a simple trading tool, which is a special type of trading, the outcome of which will be a win or a loss. Because of this duality, they are called digital or dual. Binary options can be used on any type of market, which makes trading more accessible and simple. Some binary options brokers are trying to attract customers with a good reputation, others with a high level of service, and others with the most affordable trading conditions, and fourth with bonuses.