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 ?
Not only is it in an ideal position as a discount brokerage firm, with its large and loyal customer base, but it also has grown consistently in size and profitability over the years.
the nation's leading national discount brokerage firm from 1985 to 1996, when he became president and chief operating officer of The Quick & Reilly Group, Inc.
Prior to joining Terra Lycos, he held leadership roles at Raging Bull, an innovative Internet-based investor and financial community; Fidelity Investments, the second largest discount brokerage firm in the world; and DLJ Direct, where he pioneered the online brokerage business in the early `90s.
1 provider of 401(k) retirement savings plans, the second largest discount brokerage firm and the third largest provider of 403(b) retirement plans for not-for- profit institutions in the United States.
The firm also is the number one provider of 401(k) retirement savings plans, the second largest discount brokerage firm and the third largest provider of 403(b) retirement plans for not-for-profit institutions in the United States.
Fidelity offers investment management, retirement, brokerage and shareholder services directly to individuals and institutions, and through retirement savings plans, the second largest discount brokerage firm and the third largest provider of 403(b) retirement plans for not-for-profit institutions in the United States.
Traditional and discount brokerage firms, however, appear to be only in the early stages of serving this market.