Term that derives from English and is used to describe a person who is in charge of managing the operations between a seller and a buyer, in order to obtain a commission after the deal is finalized, that is, he acts as a mediator between the parties that make up the purchase and sale negotiations, for which it charges a stipulated amount and also acts as the driver of said negotiation, not to mention that it can provide its opinion regarding business it has to do, generally to be able to exercise this activity it is necessary to first obtain a license that certifies it.
This type of individuals can be classified into two main types, the first is the Markets makers (Market makers) and the second ECN (Electronic Communications Network).
Market makers, for their part, are people who are in charge of offering investors the latest technology programs that facilitate buying and selling transactions, these brokers always act in a balanced way according to the operations that are carried out. For their part, the ECNs carry out their work through electronic networks, for this they must obtain the prices that each individual that participates in said market has published, only by showing investors the best options at their disposal, they have a point in their favor and is that the spreads to buy or sell are relatively low compared to the Markets makers.
Brokers have the ability to carry out various activities as well as to act in a diverse way, the most common form being that of sought-after intermediaries, but they can also function as search engines for the parties, which would be very similar to what stock brokers do.However, they differ from them, since brokers have much more qualities when acting. Another difference with respect to stock brokers is that the latter have great knowledge in finance and business, which allows them to serve as advisors for sellers and buyers, while brokers are in charge of mediating the transaction. and the entire process involved in negotiation. But despite these differences, it is necessary to note that when conducting a business, if you want to be successful, the participation of both is necessary.
