What is a broker's duty of care?

A broker's duty of care primarily involves acting in the best interests of their clients when providing financial services. This principle is foundational to the fiduciary responsibility that brokers hold. It ensures that brokers prioritize their clients' needs and financial well-being over their own interests or any other external factors.

By adhering to this duty, brokers are expected to give appropriate advice, facilitate suitable investments, and ensure transparency in all dealings. This duty is means that brokers must carefully consider their clients' financial situations, risks, and goals to provide informed recommendations. Upholding this responsibility fosters trust between the broker and clients, which is vital for a productive client-broker relationship.

In contrast, the other choices reflect priorities that would not align with a broker's ethical obligations. Pursuing personal commission earnings or minimizing service costs at the expense of client interests would violate the duty of care. Likewise, approving all trade requests without due diligence could lead to inappropriate or harmful investment decisions for clients, which also contravenes the broker's fiduciary duty.

Therefore, the correct answer encapsulates the fundamental principle that guides brokers in their professional conduct.