The word “broker” derives from Anglo-Normandian brocour “small trader”, of uncertain origin, but possibly from Old French brocheor “wine retailer”, which comes from the verb brochier “to broach.
A broker is a party that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed. A broker
who also acts as a seller or as a buyer becomes a principal party to the deal. In general a broker is an independent agent used extensively in some industries. The prime responsibility of a broker is to bring sellers and buyers together. Therefore, a broker is the third -person facilitator between a buyer and a seller. Brokers also can furnish considerable market information regarding prices, products and market conditions. Brokers may represent either the seller (90 percent of the time) or the buyer (10 percent) but not both at the same time. Brokers play a huge role in the sale of stocks, bonds and other financial services.
Broker Authority Questions
Q. What is an MC Number?
A. A Motor Carrier (MC) number is issued by the FMCSA. It grants the right to commence operations in interstate commerce in the transportation industry. There are several factors involved in obtaining an MC number including having BOC 3 Process Agent and a Surety Bond or Surety Trust.
Q. What are BOC 3 Process Agents?
A. A BOC 3 process agent is someone who may be serviced with court papers in any proceeding brought against a broker. In order to obtain your authority, you must have a list of BOC 3 Process Agents available to be serviced on your behalf.
Q. What is a Surety Bond or a Surety Trust?
A. A Surety Bond or Surety Trust is a safe guard for carriers to collect monies for nonpayment from a broker. The bond or trust must be in the amount of $10,000. The main difference between a bond and a trust is that a bond is through an insurance company and a trust is through a financial institution.
Q. How long does it take to obtain freight broker authority?
A. It takes approximately 16 business days to obtain broker authority provided a bond or trust is in effect within that time frame.
Q. How much does it cost to get your authority?
A. Obtaining your broker authority is only $685 through GLAuthority.com. This includes: all federal and process agent fees and same day processing. Our streamlined process allows you to start brokering as quickly as possible!
Traditionally, only the wealthy could afford a broker and access the stock market. The internet triggered an explosion of discount brokers, which allow investors to trade at a lower cost, but don’t provide personalized advice. Because of discount brokers, almost anybody can afford to invest in the market.