Difference Between A Broker and An Advisor

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.

Broker vs Advisor

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.

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 ComparisonBrokerAdvisor
SignificanceA 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 NumberThere are around three hundred brokerage firms in the world.There are around two lakh advisors currently around the globe. 
 Legal ObligationsBrokers are not subjected to high-order legal matters.Advisors need to maintain a high legal standard.
CompaniesUpstox, 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.

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 

This is very unlike in the case of advisors. Brokers get to enjoy their individuality and freedom.

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:

  • 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.

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

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:

  • 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 are paid for any kind of sale of an investment but advisors are paid for only providing consultation/ bits of advice to their clients.
  2. 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.
Difference Between A Broker and An Advisor


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
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