The company acts as an intermediary, connecting buyers and sellers without owning the goods. It earns commissions or fees for facilitating transactions.
Types of Brokerage:
Commodity Brokerage (oil, metals, agricultural products)
Real Estate Brokerage (property transactions)
Financial Brokerage (stocks, bonds, forex, if licensed)
Ship/Charter Brokerage (in logistics and shipping)
Key Activities:
Negotiating deals between parties
Market research and price analysis
Ensuring legal and contractual compliance