As a student, one gets familiarized with the term "Broker" & "Brokerage" with the help of Mathematics teacher. Not many would like the subject as it involves a lot of understanding of the questions - most of them tend to be tricky - and quite a number of calculation. It is surprising to know that those terms become an inevitable part of our lives as we move to adulthood. Yet, Just like any other mathematical subject, very few teach the real life application of Broker & Brokerage. This leaves us blind while handing them for real.
The role of brokers gets different shape year after year and their role-strength increases proportionately. Brokers were predominantly seen in financial transaction in older days such as stock markets - due to lesser knowledge in the field, purchase of property and renting out a house. Nowadays, their roles have expanded - but not limited - to fixing marriages, admission in educational institutions and/or guaranteeing jobs - primarily in government and booking of tickets.
As this get diversified, their presence is everywhere leaving oneself with no choice but to deal with them on routine basis. The everyday association with brokers is largely affecting the respect this job is supposed to hold as the true colors become obvious.
According to Oxford dictionary, definition of 'broker' is 'a person who buys and sells things for other people' and 'brokerage' is defined as 'an amount of money charged by a broker for a work that she/he does.' Sticking to this definition, one can easily make out that a broker is a person who has to make the job easier for both the seller and buyer and she/he is expected to play the role of a mediator. Similarly, brokerage is paid for the broker by both parties that are benefited out of this process.
Who/What fixes this pay? Depending on the type of transaction, it could be a flat amount, a percentage of the transaction, or a combination of both. This get fixed at the time of process initiation - independently by the buyer and seller - in case of purchase or sale or the mediator in case of matters such as mutual funds and stock markets.
All these sound fair. So what goes wrong in this whole thing? Except for the professional brokers who are licensed by various bodies and stick to transparent financial transaction, the rest are off the track with no professional commitment. Invariably this is the case from the one that transacts the least to the one that does huge with political and economic background. If you happen to be a layperson, any single encounter with a broker in the neighbourhood is likely to drag you to a state of frustration and depression. The reasons include lack of transparency, manipulative talks and unfair promises. Unless sharp enough to understand the brokers' minds and read between their lines, you are trapped. And eventually lose your peace of mind. These might sound a little overboard for some. I insist you to get into a real conversation with a broker and realize it for yourself why the term 'broker' is not used in good sense in many places!
Brokerage is not just another area of study but one with huge practical application. As we have lesser time to explore for oneself, lesser knowledge on where or what we are likely to plunge into and any hasty desire end up in trusting a broker who may or may not be reliant and trustworthy.
The study of brokers and brokerage is a life lesson to be taught to everyone.
P.S.: if you are wondering if this post is a result of personal experience, of course, yes! Does not matter. Take it as a warning and stay alert!! ЁЯШК
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