What is a Broker?

Are you searching for a job where you can use your powers of persuasion and influence? 

If you have strong communication skills, working as a broker could be perfect for you. This job essentially involves managing transactions between different parties to make sure that they run smoothly. You need to have a large amount of specialist knowledge and strong research skills to do this job well. Although it takes time and dedication to become qualified, the earning potential is very high. 

So, let’s find out, ‘what is a broker?’

About The Role

Brokers are often used by clients when they want to purchase a business or a property. These professionals have detailed insight into the area they work in and can provide vital knowledge. They work hard to get the best possible deal for their clients and finalize all the details.

In addition to having enhanced access to industry information, brokers need to know which documents need to be filed. And because they have a lot of experience with these documents, they can complete them quickly and efficiently. These professionals also use their connections to find the best deals for their clients. 

How Brokers Make Money?

There are several different ways for these professionals to make money. Most brokers earn a combination of commission, advisory fees, and markup fees. Instead of this combination, some professionals charge straight fees for providing a service and offering advice. 

Commissions are a percentage of the sales and are typically 5% or 6%. The seller is responsible for paying the commission from the sale price they receive.

Duties And Responsibilities

Several duties and responsibilities are usually associated with this job. It is important to take the time to understand them and make sure you can rise to the challenge. Here are some of the tasks you are likely to be charged with if you do this job. 

Assessing Client Needs

You need to have in-depth knowledge of the products and services the company you work for offers. Be able to answer questions from clients and recommend the best products and services for their needs. You will often attend various training programs to make sure your knowledge is up to date. 

Providing Customer Service

You will be responsible for establishing and maintaining relationships with clients. This includes keeping comprehensive records of client information and updating them regularly. It is essential to provide the best service possible for each client to gain their loyalty. 

Executing Sales

The ultimate goal of this role is closing deals. This involves making sure sellers and buyers agree on the price and terms of the deal. You must be able to address any concerns that arise and always be focused on the result. 

Processing transactions

Once a deal has been completed, you will be responsible for completing all the necessary documents. This usually requires detailed knowledge of federal and local laws related to trading, sales, and taxation. Once the documentation is ready, you will process the transaction and make sure the client is charged correctly. 

The Types of Brokers

This role involves several different specialties, and it is possible to work in several different industries. Let’s take a look at the different areas you could work and specialize in.  

Business 

This mainly involves helping clients buy and sell businesses. There are several additional specializations in this field, like merger and acquisition managers, as well as investment bankers. The first and most important step when dealing with new clients is determining the value of the business.

Once you’ve done this, it’s time to pitch the business to potential buyers. You will then assist with negotiations and complete all the necessary paperwork. 

Data 

Also known as information brokers, these professionals collect data from a range of different sources. This data is then licensed or sold to third parties such as advertising companies. The data is often collected from public records and social media platforms and helps companies market their products. 

The types of data include:

Insurance 

These brokers often work independently rather than working for a single insurance company. They need to be familiar with the terms and conditions of a wide range of different policies. They then use their expertise to find the best possible policy. It is essential to be able to explain the details of different policies clearly and comprehensively. 

Mortgage

This specialization involves helping homebuyers find the best mortgage loan for their needs. This starts with determining the needs and financial means of the client. You will then research the different options and explain them to your client. 

Real Estate

This either involves working for a real estate seller or buyer to negotiate the transaction. Your goal if working for the seller is to get the highest price possible; however, the opposite is true when working for a buyer. In both cases, you will need to use your powers of persuasion to get the client what they want. 

Once an agreement has been reached, you will be responsible for completing and filing the paperwork. It can often take several months for the transaction to be completed as you guide your client through each stage of the process and make sure they are satisfied.

Stockbroker

This specialization mostly involves trading securities for clients. Associated services include investment management, financial advice, and purchasing and selling securities. 

Talented stockbrokers have detailed knowledge of the stock market and can provide insightful advice. They advise their clients on where and when to trade so that their clients make the most amount of profit possible. In return, stockbrokers can command high commissions for their time and talent. 

How To Become A Broker?

If you have decided that this is the career for you, it is best to start planning as early as possible. You need to focus on developing the skills you need as well as earning the right qualifications. Here are the steps you should take to become qualified and start work.

 

Education Requirements

After obtaining a high school degree or GED, you will usually need to earn a bachelor’s degree. A finance degree will be useful if you decide to become a business broker or stockbroker. Many courses include some practical work experience, which is a requirement for licensing. 

Licensing Requirements 

The licensing requirements vary slightly between states and specializations. After gaining a degree, you need to complete on-the-job training and pre-licensing requirements. You will then be ready to complete the requirements set by the authority for your specialization.

If you decide to become a mortgage broker, you will need to pass the Nationwide Mortgage Licensing System exam. Alternatively, the Financial Industry Regulatory Authority regulates the requirements for stockbrokers. It is usually necessary to pass a series of exams to demonstrate your knowledge of financial trading laws. 

License renewal every few years…

Once you have gained a license, you will be ready to work independently and provide professional advice. You will need to renew it every few years. It is essential to keep up with the latest laws and regulations and have a deep understanding of them. 

Essential Skills And Attributes

You need to have the right combination of hard and soft skills to do this job well. While the essential hard skills are developed during training, the soft skills relate to personality traits. Let’s take a closer look at the skills you need to have at different stages of your career. 

Core skills

You need to develop a compelling set of core skills before you secure your first job. It is important to understand what employers in your field are looking for and reflect those attributes. 

Examples of core skills include:

Advanced skills

Developing a set of advanced skills will help you take your career to the next level. They will often be specific to the industry you work in, and showing employers that you have these skills makes it easier to secure a desirable role.

Examples of advanced skills include:

Put Together The Perfect Resume

Firstly, let’s take a look at a few career guides such as How To Become A Real Estate Broker, our Freight Broker Job Description, and How Much Does A Freight Broker Make in 2023?

Next, it takes an immaculate resume to land your dream job! So, check out the Best Opening Statement Examples For Resumes, How To List Education On A Resume, and the best Achievements To List On Your Resume, as well as Does A Resume Need An Objective, and How To Show A Promotion On Your Resume.

In addition, we’ve also covered the Best Resume Format Guide, the Most Important Skills To Put On A Resume, or How Many Years You Should Go Back On A Resume, and the Best Times Of Year To Apply For Jobs because, as you know, timing is everything!

Final Thoughts 

Working as a broker can be a good career if you enjoy interacting with people. You’ll need to have in-depth knowledge of the industry you work in and strong research skills. In addition to attention to detail, you must have strong communication skills and build a reputation for being trustworthy. 

Although it takes time and dedication to become qualified, your efforts will be rewarded with a generous salary. According to the Bureau of Labor Statistics, the average salary for a broker is $60,000 per year. However, the top-earning brokers in the United States earn more than $200,000 every year.

All the very best with your new career as a Broker!