A discount brokerage is a business that charges clients significantly lower fees than traditional brokerages, typically offering comparatively fewer services and/or advice.
Brokers, like TD Ameritrade and E-Trade, also provide advanced trader systems, which is why discount brokerages appeal to most frequent and active traders. Beginner investors usually turn away from discounted brokers because of the advanced systems and terms, and prefer going with a more traditional broker.
Discount Brokerage Units Disappointing to Many Banks; Nearly Half the Institutions That Rushed to Launch Discount Operations in Last Few Years Are Losing Money on Them
Jan 06, 1986; NEW YORK -- Many of the banks and thrifts that spent the last few years rushing to launch discount brokerage operations may now...