The term broker does not pertain to something which breaks, it is something related to the intermediary services, a person who has the knowledge of the market and who can arrange things for the clients is known as a machinery finance broker (a person who makes the buyer to meet the seller and vice versa). Certainly we all do know stuff but knowing stuff is not good enough, one has to know it professionally and sometimes one has to handle things likewise. There are so many things which we all can handle ourselves but if we talk about taking loans, buying a house or a car sometimes we need professional help for this. Financial broker is the term specifically used for that person who knows everything about the market and can arrange things; just like that!
A financial broker arranges the lenders for the borrowers. There are certainly different types of brokers such as: financial brokers, mortgage brokers etc. Mortgage brokers are the ones who arrange property to buy and provide complete assistance from the moment one initiates the deal till the deal ends, furthermore mortgage brokers are the ones who specializes in arranging home loans and finances. Unlike bank reps (loan officers) mortgage brokers are not attached to some bank, they work independently and they must be licensed to do so, otherwise it could be considered as a criminal act (if a mortgage broker is providing services without license). Mortgage brokers are the ones who charge 1% or 2% from both parties and that can be labeled as a commission or the fees (percentage is calculated on the loan amount).
In USA, Canada or Australia mortgage brokers earn up to $55,000 per year but for truly experienced and dedicated performer in the field of mortgage performer get upto 6 six digits. Usually people misunderstand between real estate agent and a broker but a broker can really own a real estate agency. This is why a broker as a profession is more beneficial as compared to real estate agents. The process to become a financial broker is get a high school diploma, get a bachelor’s degree, internship is important is order to understand the crux of financial brokerage, get the sponsor in order to get the license, take the license and get the job done. Similarly, share brokers are also known as financial brokers they the only difference between a mortgage broker and a share broker is; financial broker is somebody who deals in shares and takes care of stock exchange. Stock exchange is a place where buyer and sellers virtually meet and buy and sells shares in profit or in loss but the financial broker gets the commission (fees) just on the bases of number of shares per transaction.