A broker is a mediator or an agent that is involved in the exchange of transactions. Before online trading became popular, brokers served as the middlemen in the stock market. This is because individual investors had no direct access to the market.
Orders were placed through licensed brokers, and in return, brokers often charge high commissions — a broker purchases financial products on behalf of another person. An advisor, on the other hand, offers financial advice, which includes guidance on investment.
They work by assessing the financial record of a client, accessing the goals of the client, and they help to determine when it is best to set an asset for investment. Unlike brokers, advisors work on a fee basis, and they do not charge additional fees or commissions on sales of financial products.