The origin of the word is contested; some derive it from the French broier, "to grind;" others from brocarder, "to cavil, or trifle;" others deduce broker from a trader broken, and that from the Saxon broc "misfortune," which is often the true reason of a man's breaking. In which view, a broker is a broken trader by misfortune; and it is said none but such were formerly admitted to that employment.

Brokers are of three kinds; exchange-brokers, stock-brokers, and pawn-brokers.

Exchange Brokers, are a sort of negociators, who contrive, make, and conclude bargains between merchants and tradesmen, in matters of money or merchandise, for which they have a fee or premium. These, in old English law-books, are called broggers, and in Scotland, brocarrii, i.e. according to Skene, mediators or intercessors in any contract, &c.

They make it their business to know the alteration of the course of exchange, to inform merchants how it goes, and to notify to those who have money to receive or pay beyond sea, who are proper persons for negotiating the exchange with; and when the matter is accomplished, that is, when the money is paid, they have for brokerage 2s. per 100l. sterling. These, by the statute of 8 and 9 William III. are to be licensed in London by the lord mayor, who gives them an oath, and takes bond for the faithful execution of their offices. If any person shall act as broker without being thus licensed and admitted, he shall forfeit the sum of 500l.; and persons employing him, 5l.; and brokers are to register contracts, &c. under the like penalty: also brokers shall not deal for themselves, on pain of forfeiting 200l. They are to carry about with them a silver medal, having the king's arms and the arms of the city, and pay 40s. a-year to the chamber of the city.

In France, till the middle of the 17th century, their exchange-brokers were called courtiers de change; but by an arrêt of council in 1639, the name was changed for that more creditable one of agent de change, banque. and in the beginning of the 18th century, to render the office still more honourable, the title of king's counsellors was added.

At Grand Cairo, and several places of the Levant, the Arabs, who do the office of exchange-brokers, are called confis; the manner of whose negotiating with the European merchants has something in it so very particular, that we have referred it to a distinct article. See CONSUL.

The exchange-brokers at Amsterdam, called makel-dert, are of two kinds; the one, like the English, called sworn brokers, because of the oath they take before the burgo-masters; but the others negotiate without any commission, and are called walking brokers. The first are in number 395; whereof 375 are Christians, and 20 Jews: the others are near double that number; so that in Amsterdam there are near 1000 exchange-brokers.—The difference between the two consorts in this: The books and persons of the former are allowed as evidence in the courts of justice; whereas, in case of dispute, the latter are disowned, and their bargains annulled.

The fee of the sworn exchange-brokers of Amsterdam is fixed by two regulations, of 1613 and 1623, with regard to matters of exchange, to 18 fols for 100 livres de gros, or 600 florins; i.e. three fols for 100 florins; payable, half by the drawer and half by the person who pays the money. But custom has made considerable alterations herein.

The Jews, Armenians, and Bantans, are the chief brokers throughout most parts of the Levant and the Indies. In Persia, all affairs are transacted by a sort of brokers whom they call delat, i.e. great talkers. The manner of making their markets is very singular: after the brokers have launched out into long, and usually impertinent discourses, coming towards a conclusion, they only converse with their fingers. The buyer and seller's broker each take the other by the right hand, which they cover with their coat, or a handkerchief: the finger stretched out stands for six; bent for five; the tip of the finger for one; the whole hand for 100; and the hand clenched, for 1000. They will express even pounds, shillings, and pence, by their hands. During all this mystic commerce, the two brokers appear as cold and composed as if there were nothing passing between them.

The French distinguish two kinds of brokers; one for the service of merchants, the other of manufacturers, artificers, and workmen. The business of the former is to facilitate the sale of goods in the wholesale and mercantile way; that of the other, to procure the goods wanted for manufacturers, artificers, &c. or to sell their goods when made. At Paris there is scarce a company of tradesmen, or even mechanics, but have their brokers, who are usually taken out of their body, and make it their sole business to negotiate in the particular kinds of goods to which such company is by statutes restrained. There are brokers for drapery, brokers for grocery, brokers for mercey, &c. There are even brokers for tanners, curriers, cutlers, and the like.

Stock-Brokers, are those who are employed to buy and sell shares in the joint stock of a company or corporation, and also in the public funds. As the practice of stock-jobbing has been carried to such an extent as became not only ruinous to a great number of private families, but even affected, or at least might soon affect, the public credit of the nation, the legislature thought fit to put a stop to it, or at least to bring it within certain bounds, and under some regulation. The negotiations, &c. of these brokers are regulated by flat. 6 Geo. I. cap 18. and 7 and 10 Geo. II. cap. 8. which, among other things, enact, that contracts in the nature of wagers, &c. incur a penalty of L. 500, and by the sale of stock, of which the seller is not possessed, a forfeit of L. 100, and that brokers keep a book, in which all contracts, with their dates, and the names of the parties concerned, shall be entered, on pain of L. 50.

Pawn-Brokers, persons who keep shops, and lend money upon pledges to necessitous persons, and most commonly at an exorbitant interest. They are more properly styled pawn-takers, or tally-men; sometimes fripers, or fripeiers. These are meant in 1 Jac. I. cap. xxii. sect. 5. where it is declared, that the sale of goods wrongfully taken to any broker, or pawn-broker, in London, Westminster, Southwark, or within two miles of London, does not alter the property. And (sect. 7.) if a broker, having received such goods, shall not, upon request of the owner, discover them, how and when he came by them, and to whom they are conveyed, he shall forfeit the double value thereof, to be recovered by action of debt, &c.

In the cities of Italy, there are companies established by authority for the letting out money on pawns, called mounts of piety; a title little becoming such institutions. In some parts of Italy, they have also mounts of piety of another kind, wherein they only receive ready money, and return it again with interest, at a certain sum per annum. At Bologna, they have several such mounts, which are distinguished into frank and perpetual; the interest of the former is only four per cent.; that of the latter, seven.

Brokers are also those who sell old household furniture, and wearing apparel, &c.