discount brokerage firm

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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.

References in periodicals archive ?
The sale is likely to attract larger discount brokerages such as E Trade Financial Corp (NASDAQ:ETFC), TD Ameritrade Holding Corp (NYSE:AMTD) and Scottrade Inc, two of the sources said.
Internet transactions, which by some estimates are expected to account for nearly $500 billion in annual trades within the next five years, is dominated by discount brokerages such as Charles Schwab & Co.
The options can be broken down into three basic categories: full-service brokerage, discount brokerages and other types of investment services or a financial institution.
With more discount brokerages cropping up, this is becoming a trend,'' said John Markese, president of the American Association of Individual Investors.