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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Investors looking for the do-it-yourself (DIY) brokerage option can use discount brokerage firms.
Diverse reasons precipitated their demise, but the lowering of transaction costs from 80 cents a share certainly uprooted their economic model and opened the door to competitive platforms, most notably discount brokerage firms.
But today, Stanasolovich continues, people have their investments in a number of funds and use discount brokerage firms.
You should buy SPDRs from discount brokerage firms, which charge lower commissions than full-service brokers.
of San Francisco, one of the nation's largest on-line discount brokerage firms, surpassed Merrill Lynch & Co.
While much of this appears to be going to self-directed accounts at the discount brokerage firms, advisors in both the independent broker/dealer and RIA business models are seeing a major uptick as clients fire their current advisors (many of these assets are coming from similar competitors, not just wirehouses).
With discount brokerage firms, fees for placing telephone orders can range from $25-$55.