Online brokerage firm

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Online Brokerage Firm

A company or division of a company that offers brokerage services over the Internet. One manages one's online brokerage account by giving orders online, which the brokerage then fills. One may also settle transactions electronically, though clients usually have an option to mail a check to the firm. Online brokerage firms usually charge lower commissions than other brokerages, but do not provide individual investment advisory services.

Online brokerage firm.

To buy and sell securities online, you set up an account with an online brokerage firm.

The firm executes your orders and confirms them electronically. When the markets are open, the turnaround may be very fast, but you can also give buy or sell orders at any time for execution when the markets open.

You may mail the firm checks to settle your transactions or transfer money electronically from your bank account.

Some online firms are divisions of traditional brokerage firms, while others operate exclusively in cyberspace. Most of them charge much smaller trading commissions than conventional firms.

Online firms usually provide extensive investment information, including regularly updated market news, on their websites, though they do not provide one-on-one consultations.

References in periodicals archive ?
Once you open your account, it is probably best to start with mutual funds, You can select from the thousands of funds available from any of the online brokerage firms or you can ask your bank for help in selecting from the different funds it offers.
Online brokerage firms should move into the areas that have been traditionally dominated by full service brokerage firms and banks.
These online brokerage firms can survive if they start making money,'' Worthington said.
The index asked customers from seven online brokerage firms to determine how they perceive each brand, compare offerings and ultimately make a buying decision.
With online brokerage firms poised to spend a record $1 billion on advertising this year, state regulators are cautioning investors to look beyond the claims of how easy it is to get rich investing online and beware of risks that are magnified by the new technologies.
WITH THE EXPLOSIVE growth of online brokerage firms, it seems that practically everyone is trying to make money by trading stocks electronically.
Online brokerage firms have dropped sharply this morning after Bank of America (NYSE:BAC) confirmed plans for its retail brokerage unit to offer customers free online equity trades, effective immediately.
A number of online brokerage firms offer trades for prices from $7 to $14.
As more people trade online, traffic jams on the information superhighway inevitably lead to technical problems at online brokerage firms.
After the 2003 Global Analyst Research Settlement (GARS), several online brokerage firms were forced to reestablish their research role, initiating third-party research and ample disclosures of its relationship with the rated companies.
In addition to furthering Jaywalk's role as an independent research thought leader, he increased market share by establishing relationships with several online brokerage firms and leading service providers to the financial community.