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 ?
For example, discount brokers do not offer such facilities, but full-service brokers do.
Discount brokers can give guidance and fund factsheets, but not advice as defined by the Financial Services Act.
Buying individual stocks on a fixed income is easier today thanks to discount brokers such as Charles Schwab (877-476-2370) and online investment outfits like ShareBuilder.
Discount brokers are expanding their banking services in an attempt to make the most from each customer.
Cheryl Downing, 47, from Hove, East Sussex, has just invested pounds 5,000 in a maxi ISA through HCF discount brokers and saved pounds 200 in charges.
This could be partly due to early enthusiasm for Internet technology and the infiltration by large US discount brokers which have seen the UK as an entry point into Europe, IDC says.
However, discount brokers are now offering far more than simply buying and selling on behalf of clients, on what is called an "execution-only" process.
HAT609) ARTHUR KONTOS, CEO of NATIONAL DISCOUNT BROKERS GROUP (NDB), describes the company's business and its background; prospects for the industry, with positive and negative trends; competitive threats; strategic opportunities for the firm including its marketing plans and acquisition potential; management strength and organization; and the financial prospects of the firm looking forward.
Also, they are a growing number of big investment banks who've allied with discount brokers to give their customers an opportunity to buy shares in select IPOs.
and National Discount Brokers in Colgate Center, all of whom occupy space at 90 Hudson Street, 70 Hudson's twin to the north.