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 company offers securities and direct access brokerage, trading and advanced order routing services to their clients utilizing Lightspeed's software products.
The Company offers securities and direct access brokerage, trading, and advanced order routing services to their clients utilizing Lightspeed's software products.
MB Trading is a direct access brokerage firm that develops and markets sophisticated yet simple direct access trading technology to online investors, institutions, and qualified destinations.
Stewart was most recently chief financial officer and vice president of finance and treasurer at TradeStation Group, Inc., a trading strategy software company and direct access brokerage firm.