Wednesday, 21 July 2010

Role of brokers

Brokers are professionals who play an important role in mediating between a lender and a borrower. Brokers collect personal information about the client for the lender including employment and medical history. They also provide the clients' financial and credit information to the lender. However the role of broker can be divided as following:
1. Execution only - Here broker simply obeys what client says without giving any advice.
2. Advisory - Here broker gives advise to client that whether he should buy or sell and at what time......but it is the client who makes the final decision
3. Discretionary - Here broker takes decision as well, taking into account what client wants.

2 comments:

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