In the previous article we compared the product for which we provide services. In this article we will be comparing the role of a stockbroker v/s the role of a real estate broker.
|Stock Broking||Real Estate Broking|
|No local knowledge necessary||Local knowledge very much important|
|Exchange is your network||You require the network to be built|
|Low commission per transaction||High commission per deal|
As a stockbroker one needs to be aware of national and global trends, one has a standard place which functions a common network for all brokers but on the other hand commissions per deal are very low. Thus though the broker enjoys the benefits of an organised network his per deal earnings are very low.
As a real estate broker your local knowledge plays a very important role as it differentiates you from other brokers, you build your own network and there is no limit to the network you can build as you can tap into networks across the world. The most crucial thing for a stockbroker is the earning per deal. His commissions are monetarily higher per deal.
Both are brokers and both have their own points of differentiation. What can be a boon in your area may also turn out to be a bane as it might limit you. It is a decision that you make whether you want to work for an organized sector which gives negligible return per deal or you want to work for a growing sector where the returns per deal are soaring.