Broker

شركة السمسرة

A broker is a licensed firm that executes buy and sell orders in the market on behalf of investors in exchange for a commission. In Egypt, brokerage companies must be licensed by the Financial Regulatory Authority and be members of the Egyptian Exchange to trade on it. Investors open a trading account and a unified investor code through a broker before placing orders.

Example

You place an order with a licensed brokerage, which routes it to the exchange and, once executed, arranges settlement. The shares are registered to you centrally rather than held in the broker's name.

Why it matters

A broker is the only route a retail investor has to the exchange, and the licence is what makes that route supervised. Commission and the quality of execution are both part of what you are paying for.

A common mistake

Choosing purely on commission. The lowest published rate is not the lowest total cost once minimum charges, execution quality and the reliability of the platform are included.

Related terms

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