Difference between Broker and Agent
An agent and a broker both act as intermediaries between the company and client. But there are technical differences between both of these which represents their roles. Let say a person needs insurance, he/she would require services of both agent and a broker. Agent would act as intermediary between the insurer (company) and insured (client) and prepare the legal documents. While broker will introduce the client to different insurance policies and help him in making his decision.
Broker is any person or firm who is arranging transactions between two parties usually buyer and a seller. A Broker gets commission in return from both. They are hired to bring buyers and seller together. Broker gets its license by passing through various exams and tests. He needs relevant qualification in the field.
An agent is a person who is empowered to act or perform on behalf of another person or firm. He is the representer in negotiations and dealings with a third party. An agent is authorized to make transactions and can make decisions on behalf of the client. Stockbroker and attorney are also called as agents.
|Definition||A broker arranges transactions between two parties.||An agent is authorized to act or perform on behalf of the client.|
|Representation||A broker represents the customer.||An agent is hired by company and he/she represents the company.|
|Hire||Broker can hire agents.||Agent cannot hire broker.|
|Roles||Broker gives valuable advices to clients.||Agent manages administrative tasks.|
|Commission||Broker work on the commission basis.||Agent works with the company.|