Difference Between A Broker and An Advisor (With Table)

The income and finance department is a subject that deals with various aspects of financial terms. It includes terms like crypto, deposits, NFT, currency, stocks, shares, advisors, brokers, etc. This article shall be throwing light on two of the main topics that are covered under the finance department, which are Broker and Advisor.

Broker vs Advisor 

The main difference between a broker and an advisor is that the former is someone who holds, buys, and sells assets on behalf of their clients while on the other hand, the latter is a person who advises his/ her clients in making financial decisions and choosing apt stocks or shares.

A broker is a professional who brings a buyer and a seller together. It is the middleman between both the parties and facilitates their meetings. At one point in time, a broker can either represent a buyer is a seller. It never represents both the parties at the same time as it’s not convenient for the broker to do so.

An advisor refers to a person who has vast knowledge and experience in the field of finance and income. He/ she provides great advice to his/ her clients regarding various financial aspects. Advisors are generally appointed by clients who enjoy an official position. They only provide advice and never buy or sell on behalf of their clients.

Comparison Table Between A Broker and An Advisor 

Parameters of Comparison




A broker sells and buys stuff on behalf of his/ her clients.

An advisor provides paid pieces of advice to his/ her clients.

Payment Method 

Brokers are paid a commission on the sale of some type of investment.

Advisors are paid to provide bits of advice to clients in various fields.

  Total Number

There are around three hundred brokerage firms in the world.

There are around two lakh advisors currently around the globe. 

 Legal Obligations

Brokers are not subjected to high-order legal matters.

Advisors need to maintain a high legal standard.


Upstox, Zerodha, angel broking, groww, 5paisa, share khan, etc.

Dana investment advisor, check capital management, new south capital management, etc. 

What is A Broker?

A broker directs to a professional who acts as a middleman between a buyer and a seller. The broker sells and buys assets on behalf of their clients. They are generally hired by officials.

There are a total of three hundred brokerage firms in total around the globe. Zerodha is one of the most important and well-established brokerage firms in India so far. Here is a list of a few famous brokerage firms:

  • 5paisa
  • Angel Broking 
  • Zerodha
  • Robin hood 
  • Charles Schwab
  • Fidelity investments
  • Groww
  • Upstox
  • Share khan 

Brokers are not needed to abide by high order legal subjects or obligations. This is very unlike in the case of advisors. Brokers get to enjoy their individuality and freedom.

Their clients are from the official authority and enjoy official privileges. These brokers or brokerage firms are paid a commission when on the sale of some type of investment. He/ she acts or participates as an intermediator between a buyer and a seller and helps bring the two together. The main responsibilities of a broker are:

  • Build and maintain strong customer relations.
  • Follow up with clients.
  • Complete various administrative duties like document preparation.
  • Executes sales.
  • They need to ensure that the customer is satisfied.

What is An Advisor?

Advisors are people who have immense knowledge of a particular field. They help share their knowledge with their clients and guide them in any field that the client desires to be guided on. Their clients are usually from different fields but mainly from the business area. Advisors are paid in order to provide consultation to their customers.

There are more than two lakh advisors across the globe. Here is a list of a few advising agencies:

  • Salem Investment Counselor
  • Dana’s Investment Advisor
  • Check Capital Management
  • New South Capital Management
  • California Financial Advisor
  • The Burney Company
  • Anchor Capital Advisor 
  • Clifford Swan Investment Advisor
  • Lee Financial

Advisors or advising agencies need to follow high-order legal orders. They don’t enjoy legal freedom like brokerage firms. If they don’t abide by these laws they can be strictly disregarded and hence punished. An advisor is a mentor or a guide who mentors/ guides his/ her clients to achieve success in their respective fields. Their roles are:

  • Be well informed about all the necessary information they need in order to guide their clients.
  • Answer all the doubts of the customer and work for their satisfaction.
  • Keeping their clients informed about all the new updates.
  • Demonstrates a caring and a quite considerate attitude towards their advisees.

Main Differences Between A Broker and An Advisor

  1. Brokers participate in financial activities on behalf of their clients whereas advisors provide consultation to their clients regarding different areas.
  2. Brokers need not abide by legal subjects while on the other hand advisors need to abide by high legal orders.
  3. There exist around three hundred brokerage firms in the world whereas there are approximately two lakh advisors in total.
  4. Brokers are paid for any kind of sale of an investment but advisors are paid for only providing consultation/ bits of advice to their clients.
  5. Upstox, Zerodha, groww, angle broking, and 5paisa are some of the Indian brokerage firms while on the other hand new south capital management, Dana investment advisor, and check capital management are a few of the important advising firms.


The field of finance and income deals with brokers and advisors daily. Brokers and advisors generally work for official administrators. The former participates directly in the financial activities on behalf of their clients while on the other hand the latter indirectly just advice their clients on financial matters. There are 2 lakh advisors in total and three hundred brokerage firms overall.

Brokers are free from legal adjustments whereas advisors need to obey legal orders. Zerodha is one of the most trusted brokerage firms in India while Dana’s investment advisor is one of the topmost advising management so far.


  1. https://www.jstor.org/stable/1806183
  2. https://dictionary.cambridge.org/dictionary/english/advisor