FINANCIAL BROKERS

Financial brokers are duly licensed professionals who conduct a host of financial-related services to an individual, a business or a corporation. Basically, they act as an agent or intermediary between the client and another party from whom or from which the client needs to transact a financial dealing with. “Financial broker” may also refer to the brokerage firm.

Financial brokers either deal with personal or business financing. All other services intended for conglomerates, holding firms, public (government) or family wealth may fall on either of the two major types. Since financial brokerage is very broad, there are service-specific brokers to cater to the needs of clients – stock broker, business broker and financial adviser, among others.

Financial brokers earn through commissions for the deals and investments they were able to close. The fee may be paid by the brokerage firm that employs them or directly by the client. For advisory and consultancy services, a separate professional fee may be charged, depending on the agreement with the client.

In the United States, accreditation and licensing of financial brokers are regulated by the Financial Industry Regulatory Authority (FINRA). They conduct examinations for financial broker eligibility through a series of tests (called Series) coded for specific fields of expertise.

Meantime, for individuals who want to become professional financial brokers, the Financial Brokers Association (http://finba.biz/index.htm) in North America provides them with financial consulting education through online tools and other resources. Seasoned FBAs are provided with new contacts and wider market opportunities. The organization also connects financial service providers to companies that need them.