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Home » Business and Economy, Finance and Investing, People » Difference between agent and broker

Difference between agent and broker


Agent vs broker:

An agent and a broker both usually perform the same kind of a duty in being the mediator or the middle man during business transactions between a company and its customers. They intervene in these transactions and provide their services so as to make these deals as less cumbersome as possible to both the parties.

 


Agent

An agent usually represents a company. He is an employee of the company and he is also usually the person that the consumer or the client of the company gets in contact with regarding transactions between the company and the customer. This mediation of an agent usually makes these interactions much easier for both the parties as the agent usually visits the client in question in order to provide him or her with all the information needed regarding the product or the services that the company supplies. There are many types of agents and insurance agents, real estate agents and etc can be mentioned to name a popular few.

 


Broker

A broker usually represents the customer and not the company as opposed to an agent. This is a profession which requires the brokers to have necessary certifications and be duly licensed to perform the functions of his duty. His role is in providing all the details about a company from which his client wishes to obtain a product or a service, so that his client will be better informed regarding the offer. Most brokers work individually on a commission basis as opposed to working for a certain company which allows them the opportunity to provide a better service to the potential customer as well as the facility to carry out multiple services at the same time.

 

Difference between an agent and a broker
If one needs to obtain an insurance policy or some such service, the services of an agent and a broker are needed. Whereas the agent works as the intermediary between the client and the company, preparing the administrative documents and other procedure, the broker helps the client to make the wisest decision in introducing him or her to different policies, ways of approaching, their benefits and etc. Thus, a broker concentrates upon helping the client in choosing the best product or the service that fits his or her needs while an agent is determined to help along the company that he is working for. Therefore, the main difference between the agent and the broker is that while an agent works on behalf of a company, a broker works on behalf of the customer.

 

Summary

  • Both the agent and the broker function as the mediator between the client and the company.

  • The agent represents a company whereas a broker is much interested in helping the client make the best choice possible.
  • The agent prepares documents of the company whereas the broker presents the client with advice and more choices that best fits the client’s needs.
  • Both have to be duly qualified to perform these functions.
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