What is the role of brokerage firms in stock trading?
Baghdad - INA - Mustafa Al-Hashemi
Financial brokerage companies play an important role in achieving profits for investors trading (speculators) in the financial markets and stock exchanges in all countries, including Iraq, by playing the role of mediator in the sale and purchase of shares for companies traded in the Iraqi Stock Exchange.
The financial intermediaries receive orders to buy and sell directly from the investor (the speculator) after offering their vision of the shares and giving advice either to buy or sell and according to the stock index up or down.
According to the Securities Commission, 39 financial brokerage companies operate in Iraq, spread in Baghdad, with capitals of different value ranging between one billion and 250 million dinars.
The way the brokerage companies work is that the investor opens a bank account with one of the financial brokerage companies that the investor decides to choose as his representative in trading shares in the stock market, so
that the company nominates a financial broker whose role is limited to providing advice and suggestion to the investor to sell shares when their prices rise or buy them when their prices drop.
The multiplicity of financial brokerage companies is seen as establishing a kind of competition between them to obtain new clients and investors to speculate in the markets, where
each company provides a number of services and features that benefit the investor and the company in increasing the number of clients and obtaining a return and a percentage of profits.