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 ?
Stevenson argues that while technology has an important role to play in ensuring back office operations are slick and efficient, face-to-face contact with clients is crucial to the value brokers can bring.
* Clients: Insurance buyers want greater depth of insights from their brokers; it's become the new normal in the value brokers are expected to deliver.
Summary paragraph: Hongsong Chou, head of quantitative analytics and algorithms, Asia-Pacific, and Robert Laible, global co-head of electronic trading and QPS sales and head of program trading sales, Asia-Pacific, Nomura, explore the value brokers can add to execution performance.
The value brokers and agents present to clients should not be merely that of an intermediary for the acquisition of insurance or other risk and financial products and services.
As a residential developer in New York City for over 25 years, one of the key things I've learned is the value brokers bring to our industry.
Better information management will separate the true value brokers from the rest of the pack.
Another may be that clients don't value brokers' services particularly highly, and are unwilling to pay more for the type and quality of service they get.
Vic Del Regno, president and CEO of Morris Alper Inc., Framingham, Mass., for example, is concerned that the industrywide drive for cost control not get translated into a rejection of the total value brokers bring to the distribution system.