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 ?
Other discount brokerages such as Redfin and LG Fairmont have been tinkering with commission fees, too, as they face-off with Manhattan big guns Corcoran and Elliman.
In futures, Riot's brokerage would compete with major discount brokerages that already allow their clients to trade bitcoin futures.
(Discount brokerages Schwab, Fidelity and Vanguard all charge less than Morgan Stanley for advisor-focused robo services: 0.28% for Schwab Intelligent Advisor, 0.30% for Vanguard Personal Advisor Services and 0.15% for Fidelity AMP.
The sale is likely to attract larger discount brokerages such as E Trade Financial Corp (NASDAQ:ETFC), TD Ameritrade Holding Corp (NYSE:AMTD) and Scottrade Inc, two of the sources said.
Discount brokerages could never match the service and will never gain much more than a toe-hold of the public's trading business.
HB: Discount brokerages offer all the usual services and expertise at a fraction of the cost.
As an industry, Bidwell estimates that approximately 15% of all securities transactions in this country are now being handled by discount brokerages, and he sees more coming into the market.
STRIVE: What makes Midland Walwyn different from discount brokerages?
Relatively newer online discount brokerages such as ShareBuilder and TradeKing tout their inexpensive transaction costs and interactive communities.
"The firm was one of the last large discount brokerages with Manhattan space," said one brokerage source familiar with the company.
Profit attributes its success to the company's online strategy and the repositioning of its financial consultants to go up against competing discount brokerages. Merrill makes for an attractive buy, should interest rates continue to decline, which may increase share price.
As a result, their commissions are heftier than discount and deep discount brokerages.