Broker-dealers and ** are two different entities in the financial sector that function differently and operate differently.
A brokerage, known as a broker, is an institution that provides trading services and investment advice. Brokerages are usually staffed with brokers who can provide investors with buying, selling** services and provide investment advice based on investors' needs. The main responsibilities of a brokerage firm include assisting clients in the trading of financial products such as bonds, foreign exchange, etc., providing trading advisors and investment research reports, as well as clearing and settling transactions.
Brokerages play an important role in the market. They can trade directly through the ** exchange or execute trades on behalf of their clients as brokers. The broker also provides other services related to the market, such as portfolio management, custody, asset management, etc.
In contrast, ** is a collective investment vehicle that is managed by the investment funds of a group of investors. The way it works is to pool investors' funds and have them invested by professional managers according to their investment strategies. Investment strategies may include the purchase of bonds, derivatives and other financial assets to diversify investment risks.
*The goal is to generate returns for investors and diversify risk in the process. ** Returns are usually paid to investors through capital appreciation and dividends. Investors can participate in investing by buying shares, and the share depends on the net value of the asset.
To sum up, the difference between a broker and ** is mainly in the services it provides and how it operates. Brokerages mainly provide trading services, investment consulting and related financial services, while brokerages are tools for collective investment, which are managed by managers to create returns and diversify risks for investors.