Brokerage firm


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Related to Brokerage firm: Online brokerage firm, Retail Brokerage Firm

Brokerage Firm

A firm that conducts transactions on behalf of a client. Some brokerage firms only conduct transactions, while others also offer different types of investment advisory services. Brokerage firms derive their profit from commissions on orders given. That is, they usually collect a percentage of the value of each transaction, though some charge flat fees. Clients may give orders in a variety of ways. One may meet with a broker, call on the telephone, or give orders over the Internet. Brokerage firms handle two main types of brokerage accounts: advisory accounts and discretionary accounts. Brokers are only allowed to conduct transactions on advisory accounts on the specific orders of the account holder, or under very specific instructions. Brokerages have much more leeway over discretionary accounts, conducting transactions not prohibited by the account holder in accordance with the holder's investment goals and the prudent man rule. In practice, most brokerage firms are in fact broker-dealer firms. Most brokerage firms must register with the SEC.

Brokerage firm.

Brokerage firms, also known as broker-dealers, are licensed by the Securities and Exchange Commission (SEC) to buy and sell securities for clients and for their own accounts.

When a brokerage firm sells securities it owns, it is said to be acting as a principal in that transaction.

Firms frequently maintain research departments for their own and their clients' benefit. They may also provide a range of financial products and services, including financial planning, asset management, and educational programs.

Brokerage firms come in all sizes, from one- or two-person offices to huge firms with offices around the world. They are sometimes differentiated as full-service or discount firms, based on pricing structure and client relationships.

Some brokerage firms exist entirely online, and nearly all firms offer you the option of placing orders electronically rather than over the telephone. In most cases, trading electronically is substantially less expensive than giving buy and sell orders by phone.

References in periodicals archive ?
Brokerage firms, also known as brokerage general agencies (BGAs), typically do business with 10--20 home offices, selected based on reputation and specialty.
For example, a brokerage-firm's buy-side MKT_SHARE represents the percentage of all purchases that occur in a particular stock-day executed by that brokerage firm. In un-tabulated tests, I find that MKT_SHARE is significantly positively correlated with the number of shares traded by the brokerage firm (p = 0.71).
On the academic side, many recent studies have shown that online brokerages have moved away from offering only online trading, and are now adding many other services (i.e., banking services) in order to survive in this volatile market This study focuses on how online brokerage firms can better serve the market from the online users' standpoint.
"My brokerage firm [Coinvalores] provides me with charts, and I can also find quarterly balance sheets, analysis and recommendations.
Dutro, CPA and CFO of the company, did not need an extensive search for a brokerage firm. Only a couple were willing to trade the stock at all.
DUMNAT = dummy variable which takes on the value 1 if a national brokerage firm generated the recommendation and 0 otherwise;
in early 1996, Pier 1 sued Refco, a Chicago brokerage firm, which handled the trading activity in a cash account for an outside financial consultant.
A further advantage to having your shares on deposit at a brokerage firm occurs if you decide to give appreciated shares to an eligible charity.
When I asked what this had to do with being an analyst, she laughed and said, "I used to take poems and analyze them to death.' She left a job in academia for the brokerage firm, enticed by the considerable increase in salary she got for analyzing cosmetics companies instead of Dylan Thomas.
Global Banking News-December 4, 2018-Wealth & Finance Magazine names RJO Futures 2018's Most Trusted Financial Brokerage Firm
M2 EQUITYBITES-December 4, 2018-Wealth & Finance Magazine names RJO Futures 2018's Most Trusted Financial Brokerage Firm
Derivatives trading consists of two main entities, a brokerage firm and central counterparty that acts as a clearing house.