Question 1

Broker vs. Salesperson

Accepted Answer

A broker is a person who represents the parties in a transaction and is licensed to own a firm, while a salesperson is a professional who is licensed to sell products while representing a brokerage firm.

Question 2

Fiduciary vs. Broker

Accepted Answer

A fiduciary is a person that acts in the best interest of their clients, avoids conflicts of interest, and can only buy or sell investments that are in the best interest of their clients. While a broker can recommend investments that they reasonably believe are suitable.

Question 3

Investment Advisor vs. Broker Dealer

Accepted Answer

An investment advisor dispenses investment advice catered towards individual clients' needs and investment accounts, while a broker dealer is in the business of trading securities for its own account or on behalf of its customers.

Question 4

Broker Associate vs Broker

Accepted Answer

A broker associate is an individual licensed as a real estate broker, but who works as a salesperson under a broker or corporation, while a broker is an individual or firm that acts as an intermediary between an investor and a securities exchange.

Question 5

Broker vs. Dealer

Accepted Answer

A broker is an individual or a financial service company that provides the service of enabling the trading of securities for other individuals, while a dealer is an individual or a financial service company that enables the trading of securities for themselves.

Question 6

Freight Forwarder vs. Broker

Accepted Answer

A freight forwarder arranges the shipping of freight for customers, while a broker or freight broker coordinates the connection between shippers and carriers but does not handle freight directly.

Question 7

Insurance Agent vs. Broker

Accepted Answer

An insurance agent is an insurance professional who sells insurance plans to buyers, while a broker is an independent insurance specialist who legally represents buyers.

An insurance agent works for an insurance company and sells that company's insurance products to customers. Insurance agents provide information about available policies from the insurance company to insurance buyers. They have contractual agreements with their company specifying policies they can sell and the compensation the agent receives.

Question 8

Loan Officer vs. Broker

Accepted Answer

A loan officer works for a bank, credit union, or financial institution and will offer programs or rates that are available from that institution only, while a broker works on the borrower's behalf to find the best rate and loan options from multiple institutions.

Question 9

What do brokers do on a daily basis?

Accepted Answer

On a daily basis, brokers act as intermediaries between buyers and sellers in various transactions. They spend their days negotiating deals, analyzing market trends, and offering advice to clients.

Frequently asked questions about brokers

Questions about becoming a broker