|
|
Money broker |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Money brokerA type of agent who arranges short term loans between banks (which are seeking to lend money) and borrowers such as institutions. The money broker is not involved in the process of lending/borrowing but merely acts as an intermediary earning a commission.Similar MatchesAssociation of Private Client Investment Managers and StockbrokersAssociation of Private Client Investment Managers and StockbrokersAn association formed in 1990 to represent the interests of stockbroking and investment management firms which specialise in the provision of services for private investors (Also known as private clients). Member stockbrokers are members of the London Stock Exchange and regulated by the Financial Services Authority (FSA). Investment management firms are also regulated by the FSA.http://www.apcims.co.uk. Real estate brokerReal estate brokerOne who arranges the sale and purchase of property in return for a commission. Known as an estate agent in the UK. Board brokerBoard brokerEmployee of the Chicago Board Options Exchange who manages away from the market orders, which cannot be executed immediately. StockbrokerStockbrokerA broker dealing in stocks and shares on behalf of a client.As an investor, you will need to use a broker for most share dealing, and you should choose one that is a member of the London Stock Exchange and regulated by the Financial Services Authority (FSA). There are three types of service on offer:1. DiscretionaryThe broker has general discretion as to how he manages your portfolio.You can narrow the discretion by giving the broker guidelines. For instance, you can ask him to pick shares that provide high income rather than capital growth, or to investing only in 'ethical' companies.For his services you pay a commission on dealing (usually around 1.65%) and possibly a quarterly or annual management charge based on the value of your portfolio. If you are paying a management charge, your dealing commission should be lower (around 1%).Beware of the discretionary broker who churns your portfolio. Churning means frequent dealing which creates commissions for the broker but may not be in your interests.2. AdvisoryThe broker will contact you to suggest changes in the composition of your portfolio, but he does not have the authority to trade on a completely discretionary basis.Charging structures will vary from broker to broker. Some charge more for an advisory service than for a discretionary service, because there is more work in having to contact you before every deal.Under FSA rules you will have to fill out a form describing your financial situation and your objectives, so that the broker can provide a suitable service.3. Execution onlyThe broker's primary function is to execute the buy/sell instructions which you give him. He does not give advice either proactively or at your request.Varying degrees of administrative help will be provided - e.g. summaries of your year's trading for your tax return; e.g. factual education.Execution-only brokers make their money from dealing commissions, and the market is very competitive. Typically, the percentage charged on a purchase or sale depends on the value of the transaction, with the percentage dropping as the value rises. There will usually be a minimum charge.Note that you don't actually need a broker in all circumstances:When a company has a new issue, you can subscribe for shares directly on the basis of its printed or online prospectus.You can invest in unit trusts by filling in one of their advertisements in the newspapers, or getting in touch on the internet.You can even deal through a bank, accountant or solicitor.But if you want to deal at all frequently it makes sense to use a broker. Institutional brokerInstitutional brokerA broker who buys and sells securities for institutional investors such as banks, and mutual funds, pensions. Further SuggestionsBroker, Real EstateMortgage Broker brokerage fee Listing broker Mortgage broker Broker dealer Broker Mortgage broker Share broker discretionary broker Broker loan rate Broker's fee Customs Broker Bond broker Financial Intermediaries Managers and Brokers Regulatory Association insurance broker Foreign exchange broker Gross per broker introducing broker Independent broker carrying broker advisory broker Full service broker broker to broker broker |
|
|
|