Many people have heard the name of the profession, however, they vaguely imagine what representatives of brokerage firms and exchanges do.
This article will consider who brokers are, what is their main occupation, it will also show how brokers earn their money. And the most interesting thing is how much insurance brokers can earn.
Who are brokers?
There are several types of this profession. The most popular is a sales representative in the securities market. To carry out this activity, they need to obtain a special permit to carry out exchange operations.
Insurance brokers earn on mediation between the insurance company and the insured. There is such a thing as an introducing broker. He is engaged in accepting applications from his clients for the conclusion of exchange transactions, however, does not carry them out. Business brokers are engaged in the implementation of activities to support the process of buying and selling a business.
To become a professional in this field, you need to be well versed in the economy and financial processes taking place in the securities and currencies markets. Today, many companies offer to comprehend this specialty, after completing training in their offices.
How do brokers earn?
In Russia, participants in the securities market are considered representatives of this profession. To understand how brokers earn their money, it is necessary to understand the mechanism of the functioning of their place of work. The securities market consists of various exchanges in which many transactions are made every day.
To make a profit on the difference in the rates of securities and currencies, you need to use the services of a brokerage company. He takes a small commission from each transaction. Therefore, many firms are interested in increasing the number of operations in the market. The more transactions, the more earnings.
Many brokerage agencies seek to encourage their clients to increase the number of agreements concluded by holding various promotions and contests. For example, a stock player who will increase his fortune the most is entitled to a prize, cash or clothing. Therefore, it is not known for certain how much the broker earns, the income depends entirely on its activities.
How much does a broker earn per month?
They receive income from each completed transaction between the buyer and the seller. For this, they receive a reward, the size of which varies around 0.1%. Accordingly, all brokers are interested in increasing the number of transactions made by their clients. In addition, a small amount is charged for the order.
Many sales representatives provide their customers with the opportunity to lend to increase the volume of transactions, mutual for this a small commission in the region of 0.05%. In another way, this type of earnings is called providing “shoulder” to the client.
