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Broker vs lender

The differences between brokers and lenders can be seen in a few details. Each job has different responsibilities and duties. Additionally, a broker has an average salary of $124,861, which is higher than the $37,723 average annual salary of a lender.

The top three skills for a broker include brokerage, financial services and insurance products. The most important skills for a lender are customer service, loan applications, and business development.

Broker vs lender overview

BrokerLender
Yearly salary$124,861$37,723
Hourly rate$60.03$18.14
Growth rate5%4%
Number of jobs2,7706,465
Job satisfaction--
Most common degreeBachelor's Degree, 66%Bachelor's Degree, 63%
Average age4945
Years of experience-6

What does a broker do?

Brokers can either be a firm or an individual acting as an intermediary between a securities exchange and an investor. They often provide services to individual investors and traders who cannot engage directly with security exchanges, which only accept orders from their members. They provide investors and traders with an investment plan, market intelligence, and research. They may cross-sell some financial services and products offered by their brokerage firms. They are also typically classified as discount or full-service brokers.

What does a lender do?

A Lender is a financial institution, an individual, or a private or public group that provides loans to a business or an individual. As a lender, you will evaluate a borrower's creditworthiness by assessing loan applications. You will be responsible for determining an applicant's financial eligibility and all applicable metrics and ratios. Other duties might include setting up plans for debt payment, counseling clients on restrictions and policies, and maintaining and updating account records. Also, you will need to update your knowledge on the different loan types and financial services.

Broker vs lender salary

Brokers and lenders have different pay scales, as shown below.

BrokerLender
Average salary$124,861$37,723
Salary rangeBetween $68,000 And $227,000Between $25,000 And $55,000
Highest paying CityNew York, NYSeattle, WA
Highest paying stateNew YorkSouth Dakota
Best paying companyChild Guidance & Family SolutionsCiti
Best paying industryInsuranceFinance

Differences between broker and lender education

There are a few differences between a broker and a lender in terms of educational background:

BrokerLender
Most common degreeBachelor's Degree, 66%Bachelor's Degree, 63%
Most common majorBusinessBusiness
Most common collegeUniversity of Southern CaliforniaUniversity of Pennsylvania

Broker vs lender demographics

Here are the differences between brokers' and lenders' demographics:

BrokerLender
Average age4945
Gender ratioMale, 63.8% Female, 36.2%Male, 49.2% Female, 50.8%
Race ratioBlack or African American, 5.3% Unknown, 4.3% Hispanic or Latino, 13.2% Asian, 6.9% White, 70.1% American Indian and Alaska Native, 0.3%Black or African American, 9.3% Unknown, 4.6% Hispanic or Latino, 16.3% Asian, 6.3% White, 62.9% American Indian and Alaska Native, 0.5%
LGBT Percentage13%8%

Differences between broker and lender duties and responsibilities

Broker example responsibilities.

  • Manage, lease and sell office condominiums on site.
  • Retail trader, fix income securities; manage client account activity; properly allocate client funds to appropriate investment options
  • Manage indexes, options, foreign equities, and short-selling positions that are compatible with clients' long-term investment goals.
  • Expand and maintain professional relationships with trading accounts including banks, hedge funds and portfolio managers.
  • Specialize in finding undervalue and/or overbought commodities by using fundamental and technical analysis that exist throughout the markets.
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Lender example responsibilities.

  • Manage a multifacete commercial real estate investment firm.
  • Coordinate the real estate transactions including appraisals, inspections, loan origination and timely closing.
  • Point of contact between external company affiliate loan origination branches and licensing agencies.
  • Complete quarterly updates on all regulations and requirements to maintain NMLS nationwide licensing program.
  • Work directly with consumers as well as real estate agents, CPA's and attorneys.

Broker vs lender skills

Common broker skills
  • Brokerage, 17%
  • Financial Services, 9%
  • Insurance Products, 7%
  • Risk Management, 6%
  • Client Relationships, 6%
  • Real Estate Transactions, 5%
Common lender skills
  • Customer Service, 15%
  • Loan Applications, 8%
  • Business Development, 6%
  • Bank Products, 6%
  • Origination, 6%
  • Loan Portfolio, 5%