discount broker (redirected from Stock broker)

Discount broker

A brokerage house featuring relatively low commission rates in comparison to a full-service broker.

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Discount Broker

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.

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discount broker

A real estate broker who offers limited services in return for a commission rate lower than what is generally available in the marketplace.The most common service offered is listing a property on a multiple listing service,but all prospective buyers are then referred directly to the owner.

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Discount Broker

What Does Discount Broker Mean?

A brokerage company that carries out buy and sell orders at a reduced commission compared with a full-service broker but provides no investment advice.

Investopedia explains Discount Broker

It used to be that only the wealthy could afford a broker and invest in the stock market. However, in the mid-1970s, the brokerage industry was deregulated and brokerage commissions became extremely cheap. The arrival of the Internet created an explosion of online discount brokers. However, it is important to remember that discount brokers do not provide personalized investment advice. Because of discount brokers, nearly anybody can afford to invest in the market. For those who wish to do their own research or do not want to invest a lot of money, a discount broker is an excellent way to invest.

Related Terms:
• Broker-Dealer
• Market Maker
• National Association of Securities Dealers—NASD
• Securities and Exchange Commission—SEC
• Stock Market