Brokers are legal entities that buy and sell securities, commodity, securities based on commodity for customers and provide other services related to capital market.
Doing brokerage activities requires not only getting establishing and activity license from securities and exchange organization but also registering in securities and exchange brokers association and bourse.
People who work in brokerage companies, are such an expert, experienced and familiar with financial issues that are familiar with economic conditions, Securities market and different commodities market. They can do the best act for buying and selling securities and commodities for customers in floor of stock trading and OTC markets because of predomination on rules and conditions.
Because of the importance of brokerage companies activities and the fact that investors do buying and selling through brokerage companies , there are some conditions and rules for managers and clerks of brokerage companies. Securities and Exchange Organization should consider the scientific, experimental, general and educational competence of all brokerage companies' CEO and board of directors .
All brokerage companies transaction are done with traders. The traders are supposed to have professional certificates that these certificates show the domination on required scientific issues and rules. Not only the traders need professional certificates but also other clerks need professional certificates too.
Services Provided by brokerage companies :
The registered brokerage companies specification will be updated in "The brokerage companies specification". These companies are required by law to obtain relevant licenses in order to provide various services in capital market sector.
Brokerage companies establish branch, office, representation and hall of trading in Tehran and other cities in order to provide their services to investors. In every of these offices they can do services such as customers' orders registration and in exchanges and OTC markets, trading if commodity futures and derivative securities transaction and accepting requests of issuance and revocation of investment funds' units. In addition most brokerage companies do internet transaction or online transaction without requiring the presence of customers in offices.
Brokerage companies licenses :
The brokerage companies working in capital market may provide some other services to their customers after obtaining certain licenses from Securities and Exchange Organization.
Currently the licenses issued by the Securities & Exchange Organization are as follows:
• Transactions in securities and exchange
• Future stock transactions in securities and exchange
• Listing consultation in securities and exchange
• Issuance consultation in securities and exchange
• Metal commodity transaction in Iran commodity bourse
• Petroleum and petrochemical commodity transactions in Iran commodity bourse
• Agricultural commodity transactions in Iran commodity bourse
• Cement commodity transactions in Iran commodity bourse
• Future transactions in Iran commodity bourse
• Listing consultation in Iran commodity bourse
• Transactions in OTC
• Listing consultation in OTC
• Issuance consultation in OTC
• Online transactions
• Portfolio management
• Investment consultation
• Financial processing
• Underwriting commitment