What is the primary role of a broker in the trading process?

The primary role of a broker in the trading process is to facilitate transactions between buyers and sellers. This essential function involves acting as an intermediary, executing buy and sell orders on behalf of clients. By connecting individuals or institutions that want to trade securities, brokers help ensure that market transactions occur smoothly and efficiently. Their expertise enables them to match buyers and sellers effectively, which contributes to market liquidity and the overall functioning of financial markets.

While brokers may also provide additional services, such as investment advice, their fundamental responsibility lies in facilitating these transactions rather than offering guidance or purchasing securities for their own account. They do not typically act as regulators; instead, their role is to operate within the regulatory framework established by appropriate authorities to maintain fair and transparent market practices.