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Discount Brokerage Firm
(redirected from Direct Access Brokerages)

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Discount Brokerage Firm
A brokerage firm that provides transaction services predominantly or exclusively. That is, a discount broker provides clients with little or no research or investment advice; rather, it specializes in completing the transactions for which clients ask. Discount brokers usually rely on computer programs to find matching offers or bids. They charge lower commissions than other brokers and rely on a high volume of orders for a profit. See also: Deep Discount Brokerage Firm.

discount brokerage firm
A brokerage firm that discounts commissions for individuals to trade securities. Most discount brokerage firms offer limited advice but reduce their fees by 50% or more compared with full-service brokerage firms. Compare full-service brokerage firm. See also May Day.

Discount brokerage firm. Discount brokerage firms charge lower commissions than full-service brokerage firms when they execute investors' buy and sell orders but may provide fewer services to their clients.

For example, they may not offer investment advice or maintain independent research departments.

Because of the information and online account access on most brokerage websites, differences between full-service and discount firms are less apparent to the average investor.



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May 31 /PRNewswire/ -- MB Trading (MBT), a recognized leader among direct access brokerages, announced today that it would reduce the commissions it charges its customers beginning on June 1, 2003 in a bid to strengthen its position as the best value for active traders in the online brokerage industry.
In addition, DBC has formed partnerships with direct access brokerages including Preferred Capital Markets, CyBerCorp, All-Tech Direct and On-Site Trading who offer eSignal subscribers the ability to trade from within the product and seamlessly integrate eSignal's real-time information with advanced online trading platforms.
 
 
 
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