Part 30: Broker

If you decide to invest in the financial markets, you will need a broker to give you access to them. Let’s take a closer look at who brokers are, why they are important, and what role they play in the investment process.

Who Is a Broker?

Essentially, the word ‘broker‘ means ‘intermediary‘ or ‘agent‘ — the person or organisation that connects a buyer and a seller. This term is often used across various fields, including real estate, logistics and insurance. In this article, however, we are discussing financial brokers. A financial broker, such as Apricot Capital, acts as an intermediary between investors and the financial markets.

In order to buy or sell securities (such as stocks, bonds and ETFs), individuals and companies must have a brokerage account, as they cannot access the stock exchanges directly without a broker. Such an account can be opened with companies that are licensed to conduct brokerage activities in the financial sector, including banks and investment firms.

Brokers differ in the technological solutions and market access they offer. We discussed this in detail in our post, “What to Consider When Choosing a Broker/Investment Company?“

Main Functions of a Broker

• Market Access and Execution | A broker’s primary role is to execute buy or sell orders for securities on your behalf. Modern brokers provide digital platforms, such as applications and web portals, through which investors can place orders to buy or sell securities available through that broker.
• Consulting and Support | Depending on the type of broker, they may provide additional services such as investment consulting, market analysis, asset management, and others.

Brokers are required to operate in accordance with the rules of financial regulatory bodies, which protects investors and ensures market transparency. In Armenia, for example, companies offering brokerage services must be licensed by the Central Bank of Armenia (CBA). A list of licensed companies is available on the CBA website.

Interested in Investing?

Open a brokerage account for free and download our Apricot app from the App Store or Google Play. Learn more about investing in Apricot Academy. 

It’s important to remember that investments are subject to market fluctuations and carry inherent risks. Consider your financial goals and risk tolerance before investing. 

Apricot Capital is regulated by the Central bank of Armenia.

*The examples in this text are for illustrative purposes only. This does not constitute investment advice or a recommendation to buy or sell any specific investment instrument. The past performance mentioned in this text is not indicative of future results.