What is Broker?

Brokering what is it? Definition

Brokering what is it? In French we will sometimes call him a "broker", sometimes a "representative" or sometimes a "currency dealer". Whatever its synonyms or the name given to it, however, the broker is none other than the one who acts as an intermediary in a transaction.

Present in the field of insurance, real estate, raw materials or the sale of vehicles, the broker is this in-between of a negotiation. Whether he is a natural or legal person, better still an individual or a company, the broker is above all a merchant.

Anglicism in use in the field of finance where it means "broker" and in the computer field where it translates as "intermediary" or "relay" (this is what a computer broker refers to), the word broker draws its origins of the Anglo-Norman “brocour”. Translated, this common name designates a “small trader”.

In Old French, words like "broqueter" or "broqueteur" to designate a "wine merchant" are also presented as etymological roots of the word "broker". Here are as many clarifications (definition, synonyms, etymology) which make it possible to understand what a broker refers to.

Short History of Brokers

It's in the It was in the Rome of Julius Caesar that the beginnings of the stockbroker's profession appeared. However, the stock exchange would not survive the fall of the Empire 600 years later. It would be necessary to wait for the The Italian Renaissance saw the resurgence of government bond trading in cities like Florence, Venice, and Genoa. On the other hand...In Northern Europe, still during this period, in mines and on ships, some were already carrying out stock swaps.

Before 1985, the only means available to investors to place orders was the telephone. It wasn't very easy at that time to buy or sell stocks. The year 1985 marks the creation by William Porter of the first online trading platform (which is what an online broker refers to, the first one in history).

Then, will follow in 1991, E-Trade Securities Inc. Since then, many online trading platforms have emerged, improving as technology advances.

Broker Types

There are many types of brokers, these can be grouped according to the instruments or markets in which they operate, the regulations that legitimize their operations, countries in which they operate, or even their Order execution types. Here, then, according to these grouping criteria, are the various types of brokers.

Brokers by Instruments / Markets

Here is an overview of the different types of brokers by markets or instruments to trade.

• Forex Brokers

The Forex broker works with individuals and professionals to whom it offers to invest in the foreign exchange market (known as Forex). Access to the Forex currency market, usually only open to organisations, is only possible for individuals via a Forex broker.

Present every day and at any time on various currency markets, its mission is then to buy and sell currencies on behalf of the client. He is the intermediary between the trader and the forex market. This is what a Forex broker refers to.

Today, the internet makes it easy to find forex brokers online. What sets them apart however is usually the costs they charge. These (the costs) remain very competitive most of the time, and some brokers are recognized as Forex brokers with the lowest fees.

• Broker Stocks

What a stock broker refers to is similar to what a Forex broker refers to, with the only difference that the stock broker only offers solutions for trading stocks of various listed companies. Without its mediation, neither the investor nor the individual trader can have access to the stock exchange.

• Broker Futures

High-risk speculative products, futures are financial instruments used to anticipate future fluctuations in a stock market index, a share or any other underlying asset. To invest in futures, it is necessary to go through futures brokers. So what is a futures broker? It is simply the broker whose role is to route traders' orders in the futures or futures market.

• Brokers Options

An option contract allows a buyer to buy or sell an underlying security at a specified price. Underlying value means the product on which the contract is backed (share, ETF, index, etc.). An options or options broker is therefore a broker allowing you to invest in the options market.

• Commodities Broker

A commodities broker allows commodities to be traded in cash or via derivatives (Futures, Options, etc.). These raw materials are, among others, agricultural materials (cattle, wheat, etc.), energy materials (gasoline, oil, etc.), as well as metals (Aluminum, Gold, Silver, etc.). Gold, for example, is often used as a safe haven, and can be traded in US dollars (XAU / USD), euros (XAU / EUR), or even in Yuans (XAU / CNY).

• CFD Brokers

Many trading beginners may ask themselves “what is a CFD broker?” ”, which is understandable, given the fact that almost all online brokers in the trading space are CFD brokers. A CFD broker allows you to trade/invest in CFDs through it.

A CFD is a Contract for Difference. Specifically, it is a type of derivative asset or contract that allows speculation on the difference that will appear between the opening price and the closing price of an asset, without owning the underlying asset.

A CFD broker therefore makes it possible to speculate on the price movements of an asset (shares, currencies, commodities, indices, etc.), and this speculation is generally carried out with a leverage effect.

• Broker ETFs

What is an ETF broker? Well it is a broker that allows you to trade funds on the stock exchange (ETFs, mutual funds, etc.) through it. Investing in these funds appears to be ideal for any stock market investor wishing to diversify his portfolio without however having enough means to acquire various assets individually.

Indeed, since an ETF has a wide variety of assets, investing in parts of an ETF means investing in a fraction of all these assets at the same time.

Broker Cryptocurrencies

What a cryptocurrency broker is for is to trade or invest in cryptocurrencies (Bitcoin and all altcoins). You can either trade cryptocurrencies in CFDs or invest in physical/spot cryptocurrencies (i.e. actually buy and own them).

Broker Stock Exchange

Whether it is a natural person or a brokerage firm, the stockbroker acts as an intermediary between lenders and borrowers. Among other missions, he must collect the various stock market orders and ensure their transmission on the financial markets / stock exchanges. He must also take care of his clients' accounts, manage their compensation, etc., in return for commissions.

Insurance Brokers

With his in-depth knowledge of the insurance market, the insurance broker's main mission is to advise clients on the insurance contracts they wish to purchase. He must seek the guarantees that the clients he represents need from insurance companies.

Full-Service Broker

What is a full service broker? He is nothing but a financial advisor. The range of services offered by a full-service broker is very wide: investment or even retirement planning, asset management, provision of banking or loan services, advice on tax optimization, etc.

Broker or Discount Broker

As its name suggests, the discount broker is the one who demands the lowest commissions as compensation. Discount brokers are particularly sought after by day trading enthusiasts, and more generally by active traders and investors. Moreover, in addition to offering their clients a range of analysis and research tools, discount brokers offer them direct access to various financial markets through their online trading platforms.

Broker online

What an online broker refers to is obvious, since it is simply a broker operating online/on the Internet. It is still called direct access broker. Online brokers are particularly popular with day traders. The main onesvantages of these brokerage companies are their direct access platforms, and above all their high speed of order execution.

Brokers by Regulations

We now present in this guide entitled "broker what is it" the types of brokers according to the regulations or regulations.

• Regulated broker

One of the main recommendations when it comes to investing in the stock market and trading is to always work with a regulated broker; but what is a regulated broker? A regulated broker is registered with a financial market regulatory authority (or has a license issued by such an authority) in a country or economic zone.

Such an authority supervises, organizes and controls (and sanctions if necessary) the activity of the broker it regulates. The action of regulatory authorities is more felt by traders / investors when it comes to sanctions against brokers and limitation of leverage levels according to assets.

Thus, according to the regulatory authorities (in terms of trading or stock market investment), there are several types of brokers:

• AMF brokers

The AMF is the French Financial Markets Authority. It ensures the proper functioning of the markets, informs investors and protects their savings. The AMF also regulates financial infrastructures and markets, financial intermediaries, token issuers and savings products. AMF brokers are therefore brokers authorized to operate in France by the AMF. This authority regularly updates and updates a list of brokers that are not authorized or prohibited from operating in France (AMF blacklist).

• FSA brokers

What is an FSA broker? This is a broker regulated by the Financial services authority (FSA), which is the UK regulatory authority. Since 1^er April 2013, this authority was divided into two institutions, including the well-known Financial Conduct Authority (FCA), which is truly responsible for regulating the online brokerage industry, and the Prudential Regulation Authority (PRE).

• NFA brokers

The NFA is the acronym for the National Futures Association. It is in a way the American authority (United States) which regulates the financial markets, precisely the market for raw materials and futures contracts. Thus, an NFA broker is a broker regulated by this authority.

• ESMA Brokers

It is all European brokers regulated by the supranational body that is the European Securities and Markets Authority (ESMA). The ESMA regulation aims to protect customers and guarantees the reliability of the broker.

As you will have understood, as many regulators as there are brokers according to the criterion of regulation. You will thus have:

• CySEC brokers
• Brokers BaFin
• CFTC Brokers
• Broker ASICs, etc.

Regardless, it is best to always trust a regulated broker. Also keep in mind that a broker may be regulated by several authorities at once, in order to offer its services legally in several jurisdictions or countries at once.

In addition, note that some regulations are stricter than others (especially in terms of rules to be observed by the broker).

Unregulated broker

Knowing now what a regulated broker refers to, it is clear that an unregulated broker is the one who does not have authorization or a license to operate issued by a financial market regulatory authority in a country or economic zone.

Concretely, an unregulated broker can disappear with your funds at any time, without you being able to prosecute him, since he is not controlled / regulated by any authority. This type of broker is to be avoided absolutely.

Brokers By Country

Depending on the classification of brokers by country (in the field of stock market investment or trading), a distinction is generally made between ESMA brokers and non-ESMA brokers.

• ESMA brokers

ESMA (European Securities and Markets Authority) is the body responsible for regulating the financial markets in Europe. In this one-stop shop for European financial markets are 28 national regulatory authorities, and three representatives of the European Economic Area, including Norway, Liechtenstein and Iceland.

Set up in 2009, ESMA regulates the activity of all European brokers (those authorized to operate in Europe). We find, for example, French brokers, Belgian brokers, Italian brokers, Spanish brokers, Swedish brokers, Maltese brokers, etc. The European Securities and Markets Authority plays several roles, in this case to assess the risks for investors, or to ensure the stability of the markets. It must also promote convergence in terms of supervision, and draw up a single regulation within the European Union.

• Non-ESMA brokers

They are in no way subject to ESMA regulations. However, they depend on other authorities. This is the case for example of:

1. Japanese brokers, regulated by the FSA;
2. American brokers, regulated by the NFA or the CFTC;
3. UK brokers, regulated by the FCA;
4. Cypriot brokers, regulated by CySEC;
5. Canadian brokers, regulated by IIROC;
6. Australian brokers, regulated by ASIC;
7. Dubai brokers, regulated by the DFSA;
8. South African brokers, regulated by the FSB, etc.

Brokers by Execution

In the part “what is broker?” Definition”, we have seen that a broker is first and foremost an intermediary. However, his role can concern much more than a simple intermediation leading to the execution of the orders of the client-trader.

It is therefore in consideration of the conditions of intermediation and execution of orders that we globally distinguish Dealing brokers from No Dealing Desk brokers.

Dealing Desk Brokers

The "Dealing Desk" literally refers to the negotiation or exchange office. What is a DD (Dealing Desk) broker? It is a broker with its own trading desk from which it processes transactions for its clients. It therefore does not transmit its clients' orders on the interbank market or on the financial markets, but executes and processes them itself.

It is this type of broker who is called a Market Maker broker, since as has just been explained, he himself creates and manages the market in which his clients operate. It constitutes the counterpart of the latter's orders. Therefore, when you (as a trader at a market maker broker) make a winning trade, the broker loses, and vice versa. They are mainly remunerated by spreads (differences between the buying price and selling price of an asset).

No Dealing Desk Brokers

An NDD (No Dealing Desk) broker, on the other hand, limits his activity to intermediation. In principle, he is content to transmit his clients' orders on the markets, group them together and match them. It does not itself process the transactions of its customers and does not constitute the counterparty.

The most common NDD-type brokers are the so-called STP (Straight Through Processing) brokers and the so-called ECN (Electronic Communications Network) brokers. Concretely and in a basic way, with an ECN broker, when a trader wishes to buy for example 1 lot of the EUR / USD Forex pair, the broker matches this order with that of another trader who wishes to sell 1 lot of the same EUR / USD pair, and is limited to this intermediation, while the DD broker will process the transaction itself and sell this asset to the trader itself.

ECN brokers practice very low spreads, even zero and sometimes even negative; but they also charge commissions on transactions generally depending on the volume of the latter.

Note, however, that a broker can be both Market Maker and ECN, offering different accounts that operate on the Market Maker model and others on the ECN model.

Broker or Broker?

Broker means broker and refers to the same financial intermediary. Even if the first word (broker) is mainly used in English, it is also widely used and even valid in French to designate the broker.

What Studies to Become a Broker in 2026?

The broker's job description presents the latter as the one responsible for intermediation between the buyer and the seller, and presents this profession as very accessible (unlike other finance professions). Indeed, to access this profession, it is generally required a diploma bac+5 of a business school or one of the specializations in finance. However, the profession remains open to diverse profiles, including a for example, a two-year post-secondary degree.

It is simply expected from the broker to possess qualities including stubbornness and interpersonal skills. Indeed, called upon to be in contact all day long with his clients, the broker must have good interpersonal skills and be persevering. It is also required of the broker to have a perfect knowledge of the financial products for which he is responsible.

How Does a Broker Earn Money?

Brokers have several sources of income, the main ones being brokerage fees, which can take two forms:

The spreads. It is the difference between the buying price and the selling price of an instrument. This difference is therefore paid by the trader at the time of each transaction.

Commissions. They are not a price difference, but just fees that can be fixed or variable depending on the volume of each transaction. They are also charged for each transaction.

Furthermore, Dealing Desk brokers can make money on losing trades of some of their clients; and all types of brokers can earn a few extra pennies thanks to the various additional fees they charge (management fees, inactivity fees, etc.).
It should also be kept in mind that some brokers, especially No Dealing Desk brokers, may charge both spreads and commissions for the same transaction.

How to Sort Good and Bad Brokers in 2026?

Not all brokers are reliable, and even among those who are reliable, not all of them can give you the same satisfaction. Here are the criteria to take into account to recognize a good broker:

The regulation. What is a broker? Well, it is first of all an intermediary whose activity is regulated, authorized and controlled by a competent authority. This is the guarantee that the broker will not act against you or disappear with your funds.

• Reputation. A broker with a reputation for satisfying its clients will likely do the same for you.
• The user-friendliness of the trading platform. In short, it must suit you (its use, its interface, its tools, etc.).
• Brokerage fees and other charges. They must be as competitive as possible.
• Security. The broker must guarantee excellent protection of your funds (e.g., fund segregation) and your data (e.g., SSL encryption).

Moreover, as regards the very choice of the broker, it will be necessary to take into account criteria such as the speed and the quality ofexecution, quality and quantity of educational content, the minimum deposit, the other costs (management, inactivity, etc.), the trading and research tools, etc.
Finally, a trick to detect a bad broker is to check if it is present in the blacklist published and updated regularly by the AMF or any other regulator.

What is the Difference between a Broker and a Trader in 2026?

The broker and the trader have in commonBoth traders and brokers intervene in financial markets in search of profits, but not in the same way or with the same prerequisites. The following table provides an overview of the main differences between a trader and a broker.

What is the Salary of a Broker?

In France and according to Glassdoor, the salary of a broker is between €20 and €000 per year, i.e. an average salary of €116 per year.

❓ How Does a Broker Earn Money?

The broker can be remunerated by taking spreads and/or commissions on client transactions. They can also make money from losing client trades (for Dealing Desk brokers), management fees and the like.

What is the Role of a Broker?

The broker's main role is to serve as an intermediary between buyers and sellers. In the context of trading, it serves as intermediaries between issuers of securities and investors, or between investors and the market. It therefore transmits investors' orders on the markets, and can also match and execute them (depending on whether it is a Dealing Desk broker or not).

Do you use a broker as an intermediary in the field of trading or another field? Feel free to share your experience with us by leaving a comment below!