What are independent brokers?
One view of the floor of the main regional stock market may seem with an untrained eye like chaos. In fact, a rather organized trading system is led by teams of independent brokers and broker dealers. For orders, a broker is introduced on the floor of the main stock exchange or floor broker, fulfilling orders and selling orders from large and small investors. These experts are often compensated on the basis of the amount of money they make for their clients and for the company they work for.
Although many exchanges around the world have switched to the electronic business environment, there are still large stock markets - including the New York stock exchange in the United States and the London Stock Exchange - that still employ independent brokers on the exchanges. These floor brokers are not employed by the exchange they trade, but instead an independent company that has the rights to a space -storey floor.
It is usually the establishment of a manager that belongs to the brokers,Where independent brokers from the same company have a home base. Here is the place where the brokers communicate and make the purchase and selling of orders for shares on behalf of their clients. This is known as ordering.
These commercial orders are communicated from one broker to another often via the business floor with hand signals. Independent brokers from the same company usually wear a jacket of the same color so that brokers can easily recognize a trader from their own company. The task of independent brokers is to make orders for the best possible price for their clients. This is done in the bid process, where the seller determines the price of the application and the buyer offers a bid price and the independent broker must make an order.
Stock brokerage companies can employees hundreds or even thousands of individuals UAL. They are usually large investment banks with independent brokerage weapons or divisions that have the largestThe presence on the floor of the main stock exchange. However, only a group of brokers from the relevant company is selected to be on the stock exchanging floor. These brokers can carry out shops on behalf of clients or on behalf of the company they work for.
The key difference between these tasks is that when traders make purchasing and selling orders on behalf of clients, they act as independent brokers. If it is solid money trading on behalf of the company, these experts carry out shops as an independent seller. A brokerage company could buy and sell securities with their own money as a means to create another current of income.