Discount brokerage

A discount brokerage is a business that charges clients significantly lower fees than traditional brokerages, typically offering comparatively fewer services and/or support.

Securities

In the securities industry, a discount brokerage helps clients buy and sell securities on a stock exchange. Discount brokerages usually allow their clients to trade for their own account with little or no action with a live broker. Some brokers, like Bank of America, have now offered no-commission trades to their clients that have a specific amount of money with them.

Discount brokers, like TD Ameritrade, PTI Securities & Futures and E-Trade, also provide advanced trading systems, which is why they appeal most to frequent and active traders. Beginner investors may turn away from discounted brokers because of the advanced systems and terms, and instead go to traditional brokers.

Whether you deal with a discount brokerage, a full-service discount brokerage, or a traditional brokerage, most brokers are regulated and licensed by a local authority. In the U.S., the Financial Industry Regulatory Authority (FINRA) oversees brokerages, and consumers can do an online search to check the broker's standing at [1]. In the UK, the Financial Services Authority, handles regulation of brokerage firms.

See also

• Charles Schwab Corporation
• E-Trade
• PTI Securities & Futures
• Scottrade
• SogoTrade
• TD Ameritrade

Real estate

In the real estate industry, a discount brokerage helps clients buy and sell real estate properties, often listed on the MLS. The growth of discount real estate brokers has caused considerable concern with their full-service, full-fee competitors. In the US, the US Justice Department settled in 2008 with the National Association of Realtors to allow discount brokers to have access to the same MLS home listings as full-service agencies ^[1]

See also

• Assist-2-Sell
• Reduced-commission MLS Listings
• Real estate broker

References

1. ^ Iwata, Edward (30 May 2008). "Online Real Estate Agents Get Equality". USA Today. http://www.usatoday.com/money/economy/housing/2008-05-27-online-real-estate-agents-settlement_N.htm. Retrieved 22 February 2009. 

This economic theory related article is a stub. You can help Wikipedia by expanding it.v · Categories: Real estate Financial services companies Economic theory stubs Wikimedia Foundation. 2010. Игры ⚽ Нужно сделать НИР? Mügeln Gia Maione Look at other dictionaries: discount brokerage — ➔ brokerage * * *    A brokerage firm that executes orders at a discounted rate of commission. Discount brokers tend to offer fewer client services than non discount or full service brokers. For example, they may not offer full research and… …   Financial and business terms Discount Brokerage — Bereitstellung von Bankdienstleistungen und Informationsmöglichkeiten überwiegend im Wertpapiergeschäft bei geringer oder ohne Beratungsleistung. Die Abwicklung der Dienstleistungen erfolgt häufig online oder per Internet. Die Produkte erreichen… …   Lexikon der Economics discount broker — discount brokerage. 1. an agent who discounts commercial paper. 2. a stockbroker who charges discount commission fees. [1860 65] * * * …   Universalium brokerage — The fee paid to a floor broker for executing orders. May be a flat amount or a percentage; also referred to as a commission. Chicago Mercantile Exchange Glossary Commission charges payable on securities transactions. Dresdner Kleinwort… …   Financial and business terms discount broker — noun : one who makes a business of discounting commercial paper usually as an agent * * * discount brokerage. 1. an agent who discounts commercial paper. 2. a stockbroker who charges discount commission fees. [1860 65] …   Useful english dictionary discount — dis·count 1 / dis ˌkau̇nt/ n: a reduction made from the gross amount or value of something: as a: a reduction made from a regular or list price or a proportionate deduction from a debt account usu. made for prompt payment or for payment in cash b …   Law dictionary brokerage — bro·ker·age / brō kə rij/ n 1: the business or establishment of a broker 2: a broker s fee or commission Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary discount broker — A brokerage house featuring relatively low commission rates in comparison to a full service broker. Bloomberg Financial Dictionary See broker. * * * discount broker discount broker ➔ broker1 * * * discount broker UK US noun [C] ► STOCK MARK …   Financial and business terms Deep Discount Broker — An agent that mediates sales and exchanges between securities buyers and sellers at even lower commission rates than those offered by a regular discount broker. As one might expect, deep discount brokers also provide fewer services to clients… …   Investment dictionary Volume Discount — A financial incentive for individuals or businesses that purchase goods in multiple units or in large quantities. The seller or manufacturer rewards those buying in bulk by providing a reduced price for each good or group of goods. Volume… …   Investment dictionary 18+ © Academic, 2000-2024 Contact us: Technical Support, Advertising Dictionaries export, created on PHP, Joomla, Drupal, WordPress, MODx. Mark and share Search through all dictionaries Translate… Search Internet Share the article and excerpts Direct link … Do a right-click on the link above and select “Copy Link”