Investment brokerage services refer to the services rendered by the investment brokerage firms or investment brokers. An investment brokerage firm is a business entity, which performs the functions of an investment broker or that provides the services of an investment broker.
An investment broker functions as a mediator between the purchasers and sellers of investments. An investment brokerage firm offers a wide range of services associated with investment to its customers and clients. An individual investment broker basically represents the buyer or seller in a particular transaction.
The investment broker finds investment buyers for investment sellers and vice versa. For rendering investment brokerage services, the investment broker charges a fee from the clients and this fee is known as commission. The commission is normally represented as a percentage.
The investment brokers provide different types of investment brokerage services, such as securities brokerage services, foreign exchange brokerage services, futures and commodity brokerage services, real estate brokerage services, risk diversification services, portfolio management services, commercial brokerage services, insurance brokerage services, and consultation and advisory services.
Investment brokerage services are indispensable for the investors. Firstly, they provide a variety of valuable information and investment guidelines to the investors. With the help of these, the investors are able to find out the most suitable investment option for them. Secondly, they offer a lot of risk diversification techniques to the investors and by implementing those techniques the investors are able to manage their investment portfolio better. Thirdly, the investment brokers perform a lot of functions on behalf of the customers in any transaction, so the customers can depend on the investment brokers to a substantial extent. Fourthly, the investment brokerage services offer investment tips based on comprehensive market research and data analysis. Lastly, the investment brokerage firms build up a perpetual relationship with the investors and this in turn facilitates the financial transactions.
Currently, with the advent of Internet a large number of investment brokerage companies are providing their services online, which is a timesaving, cost-effective and convenient approach for the customers and this has increased their accessibility to the customers.
Last Updated on : 5th July 2013