Definitions

discount-brokerage

Discount brokerage

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

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.

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.

See also

Real estate

In the real estate industry, a discount brokerage helps clients buy and sell real estate properties, often listed on MLS.

See also

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