Exchange broker

Today, the popularity of exchanges is not in anyone's doubt. However, only its members can trade directly on the stock exchange, which, by the way, must be legal entities. This means that professional participants in the stock market have a license for dealer or brokerage activities.

In today's society, it's in the nature of things to play on the stock exchange: according to statistics, every second does it. Therefore, it is natural that trading on the exchange of a physical person requires an intermediary who will execute orders. Such is the stockbroker. His commission is provided by commissions from the operations of his clients.

Buying shares or currency through a broker is pretty simple. The brokerage company concludes a service contract with the client, which confirms the client's right to give instructions for working on the stock exchange. First, a corresponding amount of money is required to buy shares and currency. The stock exchange broker transfers these funds to the exchange, where a special account is opened for the client's account in order to account for exchange transactions, as well as cash flows. After going through these stages, you can start buying and selling currency or securities. To do this, you just need to give an order for the relevant transaction to the representative of the broker at the exchange.

Orders for a deal with currency or securities to a broker are submitted in various ways, for example, by phone. The call provides an opportunity to get additional advice on the state of the market, which, perhaps, will change the client's decision. A telephone conversation is recorded and in fact is the basis for verifying the correctness of the client's order execution by the broker.

Another option for submitting an order is to submit it in advance by fax or in writing. The bidding process, as a rule, can be observed in the stock centers, which are specially equipped. There is also an opportunity to apply.

Currently, the most convenient way to apply is electronic. Internet trading stocks and currency requires only an Internet-connected computer. It establishes a special program for automatic collection of applications, which is provided to its client by an exchange broker. The client thus can observe the process of bidding in real time and himself send requests for the execution of a particular transaction. The submitted application for any variant of submission contains certain information:

• Surname or personal code (it is assigned by the broker);
• Name of shares or currency;
• Type of transaction (buy / sell);
• quantity;
• Price.

The price of the transaction is indicated in two ways:

• Market application - the stockbroker executes the bid immediately at the best possible price at that time (immediate execution);

• Limit order - the client reports the specific price of the transaction (pending order). It is exhibited by the broker in the trading system and when this price is reached, the application will be executed.

The price for the same currency or security when circulating on different exchanges may differ. This can be associated with significant differences in the technique, procedure and level of organization of trades conducted, in the course of which, when the supply and demand for the goods are directly confronted, prices are set.

Applying for the services of a professional, it is necessary first of all to make sure that he has a valid license. If the company does not have such permission, and it will go bankrupt later, it will not be possible to return its funds, even if there is a court decision. For such information, you can contact depositories - in special companies that have a database that contains information about market participants: about the level of education, about the places of their work and so on.