What is a broker For Trading?

Facundo González hizo perder 300 puntos a los combatientes por esta broma

Facundo González una vez más dejó muy molestos a sus compañeros por sus ganas de ‘ayudar’ a los guerreros.

Facundo González no duda en cada competencia de ponerle su toque de chispa, pero esto no lo habría soportado Rosángela Espinoza, quien no dudó en poner en evidencia su trampa para ayudar a Patricio Parodi. VER VIDEO AQUI

Esta vez la popular ‘Rubia de Gamarra’ no soportó más y rompió en llanto al expresar lo que sentía. La empresaria se vio muy afectada al acercarse al micrófono y comenzó señalando que no elegiría a ningún hombre de su equipo para que sea el capitán, pues señaló que ella podría ser una buena candidata al puesto. 

Su respuesta causó las risas de algunos de sus compañeros, pero hizo estallar a la chica reality. “Yo sé que se ríen, siempre rajan y es por eso que este equipo está así porque todos son individualistas. La verdad yo no me siento cómoda aquí. Mi rendimiento es pésimo porque yo me siento mal. Yo no quiero estar más, no quiero perjudicar a los combatientes y me quiero ir del programa“, dijo entre lágrimas. 

“Esto no es broma para mí. Yo no me siento bien acá, no siento la pasión y no celebro ningún punto. No es por todos en el equipo, es porque el equipo es un completo desastre. No hay camiseta y no hay garra. No se siente eso como se sentía en los guerreros. Es diferente. Yo sé lo que pasa aquí. Me duele no tener esa pasión de siempre. No les importa”, agregó envuelta en llanto. 

In this article we will explain what a trading broker is. Read on to learn how a broker can be the key to your success as a trader.

What is a broker?

The word “broker” translates to “intermediary” or “broker”: someone who intervenes in a trade to connect supply and demand.

A broker is necessary in many sectors, for example, real estate. Even if this person is not essential to buy or sell a property, he has the necessary means and contacts to complete the transaction. This makes the job much easier.

However, in the world of the stock market and financial markets, it is necessary to use the services of a broker, since users or investors cannot buy and sell directly on the market. Access to these markets is only possible through a duly authorized broker.

Thus, in order to buy or sell shares or other financial products listed on a market, the user must contact a broker and express his intentions through precise orders. The broker (who may be a natural person or a company) then executes these orders on behalf of his client. He usually also provides all the services required for the investment (necessary infrastructure, account management, deposit of assets).

For this service, the broker charges a commission and thus earns his fee.

It should be noted that for this activity he needs a license and must be supervised by the financial authorities. In this way, clients’ funds are absolutely safe and the broker cannot commit fraudulent acts.

Is a broker the same as a trader?

Not at all. Although there are brokers who can buy and sell on their own, a broker’s job is to provide financial brokerage services. The trading they do for their own account is merely ancillary to their business (providing counterparties for traders).

A trader is a short-term investor. They are an important figure in the financial markets because they add a lot of liquidity to the markets (i.e., they provide buy and sell orders for other investors or traders to have counterparties).

In the stock market, there are traders, long-term investors, large financial institutions, brokers (who trade for their own account and for the account of others), etc. Each of these people plays a different role and has a different idea of how to make money in the stock market.

In particular, a trader is someone who buys and sells stocks to make a profit from price fluctuations. Unlike the (real) investor, this stock market trader does not care about the dividends or the financial situation of the companies he invests in. He only cares about one thing: buying at a certain price in order to sell at a higher price, he is a very active trader.

As you can imagine, a trader needs a broker to trade in the market, and a broker needs traders as clients.

How does an online broker work?

An online broker works exactly the same way. To invest in the stock market, forex, futures or cryptocurrencies, all you need to do is sign up for the broker’s services and open an account.

This is a quick and easy process. To do this, you need to contact the broker through its website, fill out the relevant forms and submit the required documents in digital form.

An account with a broker is similar to a bank account, with the difference that the funds deposited in it serve as capital for trading financial assets. Purchased securities can also be deposited, not only money.

Of course, the investor or trader can make deposits and withdrawals from the account using payment methods (such as bank card, wire transfer, Paypal, etc.). Each broker has its own policies and payment methods regarding these cash transactions.

An interesting aspect of online brokers is the possibility of trading 24 hours a day (there are financial markets that are not closed). This is due to the fact that orders are placed through a trading platform that the broker itself provides free of charge. There is no need to wait for the broker’s business hours, as everything is done digitally.

All the necessary functions are performed on the trading platform (monitoring the markets, analyzing the charts, placing orders, adjusting and managing trades and account balance, etc.). It is the only tool a trader needs, apart from a small amount of capital and infrastructure (terminal, internet connection, etc.).

Besides the trading platform for computers, the vast majority of online brokers offer a version for mobile devices. Thanks to these applications, it is possible to trade on the markets from anywhere and at any time.

In today’s globalized world and thanks to new technologies, anyone who wants to invest has access to a large number of financial markets. It is as easy to invest in oil or Amazon shares as it is to invest in the Euro/Dollar or the Ibex 35, there are no barriers at all.

For this reason, online brokers usually trade financial assets from all over the world, belonging to the following markets:

Foreign exchange market (also called Forex; from Foreign Exchange).

Stocks on the stock exchange.

Stock indices.

Commodities (such as gold, oil, natural gas, etc.).


Exchange Traded Funds (ETFs).

Finally, it only remains to talk about an interesting tool that is often offered by online brokers: the demo account. This is a free (and in most cases, unlimited in time) trading simulator, in which you trade in real conditions, with the difference that the capital is virtual. It is a good option to refine strategies and gain experience in financial markets.

Types of brokers

There are several types of brokers. They can be classified in different ways. However, depending on the assets they offer, they can be classified a priori into the following categories:

Stock brokers: these are brokers that only have access to one or a few specific exchanges to trade company stocks and some other assets. Their catalog of available financial products is more limited, but they are specialists in the assets they trade and can offer good conditions to their clients. Their offer is usually focused on long-term investments (buying shares for deposit and safekeeping).

Forex and CFD brokers: Forex and CFD brokers are usually online brokers. They provide access to a large number of financial markets (those mentioned above). Although they also offer the ability to trade stocks (and with very good deals), they mainly provide access to the markets through a derivative product called Contract For Differences (CFD). CFDs have a number of advantages for short-term traders and beginners who do not have a lot of capital. However, the risk must be carefully controlled.

Futures brokers: provide access to the financial futures and options market. Another type of derivatives that is traded on an official market and also has its advantages. However, they are more rigid products than CFDs.

Usually, brokers can offer access to stocks, futures and other financial assets. However, CFDs and the foreign exchange market are usually reserved for online brokers that specialize in this area (which, in turn, can offer the possibility of investing in physical shares).

In principle, no broker is better than another, everything depends on the needs, strategy and trading style of the investor or trader.