An individual or firm that acts as an intermediary, often between a buyer and seller, usually for a commission. Related to international trade services there are three specific kind of brokers:
- Commercial or merchandise broker: an individual or firm that works with buyers and sellers by negotiating between them in buying and selling services on a commission basis to manufacturers as a sales representative for their products. Such a broker has no control or possession of the product that is sent directly to the buyer; he or she merely acts as a middleperson in all transaction. It is a commercial figure quite usual in industries such as food (meat, cereals, wine) or shipbuilding.
- Customs broker: an individual or firm licensee authorized to enter and clear goods through Customs for another individual or firm. See customs broker.
- Insurance broker: an individual or firm that acts as an intermediary between an insurance company and the insured. Se insurance broker.
In international sales, brokers charge a commission as percentage of the sales effectively made by the seller, through an International Broker Agreement. Also called agent, intermediary or middleman.