Stock market agents
You must have heard about agents in the Stock market. Well, a stock agent or stock market agent is a synchronized qualified stockbroker who pays money for and puts on the market, shares and other securities in the course of market makers or bureau agencies in support of investors. An agent may well be in a job with a brokerage agency. A business deal on a stock exchange is required to be completed among two affiliates of the stock exchange—any run of the mill individual possibly will not come into contact with any given Stock Exchange and solicit to buy and sell stock. Such an exchange is obliged to be done from beginning to end by a stock market agent.
Two Stock-Trading Agents: Market Making and Technical Analysis
A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. Because securities exchanges only accept orders from individuals or firms who are members of that exchange, individual traders and investors need the services of exchange members.
Brokers provide that service and are compensated in various ways, either through commissions, fees or through being paid by the exchange itself. As well as executing client orders, brokers may provide investors with research, investment plans and market intelligence.
They may also cross-sell other financial products and services their brokerage firm offers, such as access to a private client offering that provides tailored solutions to high net worth clients. In the past, only the wealthy could afford a broker and access the stock market. Online broking triggered an explosion of discount brokers , which allow investors to trade at a lower cost, but without personalized advice.
Their low fee structure is based on volume and lower costs. Most discount brokers offer an online trading platform which attracts a growing number of self-directed investors. Full-service brokers offer a variety of services, including market research, investment advice, and retirement planning , on top of a full range of investment products.
For that, investors can expect to pay higher commissions for their trades. Brokers receive compensation from the brokerage firm based on their trading volume as well as for the sale of investment products. An increasing number of brokers offer fee-based investment products, such as managed investment accounts.
In the real estate industry, a broker is a licensed real estate professional who typically represents the seller of a property. A broker's duties when working for a seller may include:.
It is not uncommon to have a real estate broker work for a buyer, in which case, the broker is responsible for:. The broker must make a reasonable effort to obtain information on the customer's financial status, tax status, investment objectives and other information used in making a recommendation.
Under the Investment Advisers Act of , RIAs are held to a strict fiduciary standard to always act in the best interest of the client, while providing full disclosure of their fees. Real estate brokers in the United States are licensed by each state, not by the federal government. Each state has its own laws defining the types of relationships that can exist between clients and brokers, and the duties of brokers to clients and members of the public. There are many companies registered as brokers with FINRA, though some may use their broker designation for different purposes than others.
Many proprietary trading firms are registered as brokers so that they and their traders can access exchanges directly, however they do not offer broker services to customers at large. This differs from the role full-service or discount brokers might provide. Full service brokers tend to use their role as a brokerage as an ancillary service available to high-net worth clients along with many other services such as retirement planning or asset management.
Examples of a full service broker might include offerings from a company such as Morgan Stanley or Goldman Sachs or even Bank of America Merrill Lynch. Such companies may also use their broker services on behalf of themselves or corporate clients to make large block equity trades. Other full service brokers may offer specialized services including trading execution and research.
There are many such firms though their ranks have been decreasing because of mergers or from the higher cost of compliance with regulations such as the Dodd Frank act.
Still other full service brokers offer personalized consultations and communications with clients to help manage wealth and plan for retirements. The larger brokerage firms tend to carry an inventory of shares available to their customers for sale. They do this to help reduce costs from exchange fees, but also because it allows them to offer rapid access to popularly held stocks.
Other full service broker firms are actually agency brokers. This means that unlike many larger brokers they carry no inventory of shares, but act as agents for their clients to get the best trade executions. Late in many discount brokers made a significant shift in their business model that included charging no commissions on some or all of their equity trades.
Proprietary trading firms registered as brokers may not advertise their services as brokers, but use their broker status in a way that is integral to their business. While larger banks or firms may have proprietary trading desks within their company, a dedicated proprietary trading firm tends to be a comparatively smaller company. Career Advice. Your Money. Personal Finance. Your Practice.
Popular Courses. Investing Brokers. What is a Broker? Key Takeaways A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. A broker can also refer to the role of a firm when it acts as an agent for a customer and charges the customer a commission for its services. Full-service brokers provide execution services as well as tailored investment advice and solutions.
Determining the market values of properties. Listing and advertising the property for sale. Showing the property to prospective buyers.
Advising clients about offers, provisions , and related matters. Submitting all offers to the seller for consideration. Locating all properties in the buyer's desired area sorted by price range and criteria.
Preparing an initial offer and purchase agreement for a buyer who decides to make an offer for a property. Negotiating with the seller on behalf of the buyer. Managing inspections on the property and negotiating repairs. Assisting the buyer through to closing and taking possession of the property.
Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Related Terms How Brokerage Companies Work A brokerage company's main responsibility is to be an intermediary that puts buyers and sellers together in order to facilitate a transaction.
Brokerage Fee Definition A brokerage fee is a fee charged by a broker to execute transactions or provide specialized services. Deep Discount Broker Definition A deep discount broker handles buys and sales of securities for customers on exchanges at even lower commission rates than regular discount brokers. Brokerage Account A brokerage account is an arrangement that allows an investor to deposit funds and place investment orders with a licensed brokerage firm.
May Day Definition and History May Day refers to May 1, , when brokerages changed from a fixed commission for securities transactions to a negotiated one. Cash Equity: What You Should Know Cash equity is a real estate term that refers to the amount of home value greater than the mortgage balance; it is the cash portion of the equity balance.
Partner Links. Related Articles. Brokers Best Brokers for Low Costs. Mortgage Real Estate Agent vs. Mortgage Broker: What's the Difference?
Dyer & Blair Investment Bank LTD. Standard Investment Bank.
A stockbroker is a professional who executes buy and sell orders for stocks and other securities on behalf of clients. A stockbroker may also be known as a registered representative , investment adviser or simply, broker. Stockbrokers are usually associated with a brokerage firm and handle transactions for retail and institutional customers alike. Stockbrokers often receive commissions for their services, but individual compensation can vary greatly depending on where they are employed. Brokerage firms and broker-dealers are also sometimes referred to as stockbrokers themselves.
On the 28 th November , 45 second-year Strathmore Institute of Mathematical Sciences students had the opportunity to visit the Nairobi Securities Exchange for an Introduction to Investment training session. The Nairobi Securities Exchange NSE is a dealer market that provides an organized trading platform for the buying and selling of financial instruments of publicly listed companies.
As a matter of fact, if you are not careful, you might end up losing your hard-earned investments to unscrupulous stock brokers. Stock market brokers in Kenya exist to make stock trading a simple procedure for ordinary Kenyans who might not have grips about the mechanisms of the stock markets. It is, therefore, recommended that you look for registered stock brokers who can guide you through the market.
Nairobi Securities Exchange
A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. Because securities exchanges only accept orders from individuals or firms who are members of that exchange, individual traders and investors need the services of exchange members. Brokers provide that service and are compensated in various ways, either through commissions, fees or through being paid by the exchange itself. As well as executing client orders, brokers may provide investors with research, investment plans and market intelligence. They may also cross-sell other financial products and services their brokerage firm offers, such as access to a private client offering that provides tailored solutions to high net worth clients.
Best international online brokers for citizens in Kenya
It therefore became inevitable for them to come together, pool their savings and start these businesses as partners or co-owners. The contribution of each partner to the enterprise was to be represented by a unit of ownership. This was the precursor to what we call shares. As the volume of shares increased with more companies floating shares giving people opportunities to buy their shares , the need for an organized marketplace for the exchange of these shares escalated. As a result, these traders decided to be meeting at a coffeehouse, which they used as the marketplace. This was in the year , and the first stock exchange, the London Stock Exchange, was founded. Financial intermediaries brokers, fund managers, investment advisers investment banks etc and other instruments like bonds were then to follow suit as an inevitable consequence. The Stock Market is therefore a market, which deals in the exchange of shares of publicly quoted companies, and government, corporate and municipal bonds among other instruments for money. As a capital market institution, the Stock Exchange plays an important role in the process of economic development:. Shares are financial instrument where one acquires ownership stakes of a company rather than an IOU.
Designing Mechanisms and Systems pp Cite as.
Blain Reinkensmeyer May 7th, The StockBrokers.
Best Online Brokers 2020
It was a voluntary association of stockbrokers in the European community registered under the Societies Act in British Kenya. At that time, stock broking was a sideline business conducted by accountants, auctioneers, estate agents and lawyers who met to exchange prices over a cup of coffee. Because these firms were engaged in other areas of specialisation, the need for association did not arise. In , an estate agent named of Francis Drummond established the first professional stock broking firm. He also approached the finance minister of Kenya, Sir Ernest Vasey, and impressed upon him the idea of setting up a stock exchange in East Africa. The two approached London Stock Exchange officials in July and the London officials accepted to recognise the setting up of the Nairobi Stock Exchange as an overseas stock exchange. In the Nairobi Stock Exchange was then constituted as a voluntary association of stockbrokers registered under the Societies Act. Since Africans and Asians were not permitted to trade in securities, until after the attainment of independence in , the business of dealing in shares was confined to the resident European community. At the dawn of independence, stock market activity slumped, due to uncertainty about the future of independent Kenya. For the first time since the formation of the Nairobi Stock Exchange, the number of stockbrokers increased with the licensing of eight new brokers. In , the largest share issue in the history of NSE, the privatisation of Kenya Airways, came to the market. The Kenya Airways Privatization team was awarded the World Bank Award for Excellence for for being a model success story in the divestiture of state-owned enterprises. The amount for block trades was revised upwards from Kshs. The block trade rules now apply to trade values of above Kshs. The CDSC being the legal entity that owns and runs the clearing, settlement, depository and registry system for securities traded in Kenya's capital markets.
List of Trading participants
To find the best international online brokers in Kenya, we went ahead and did the research for you. After testing, analyzing and comparing 61 brokers, 5 made it to the top. We highly recommend all 5 to you. And now, without further ado What makes a good online broker?
