What is a brokerage firm


This page was last edited on 8 Februaryat This is usually not possible with a regular stockbroker. By using this site, you agree to the Terms of Use and Privacy Policy. Regulation of Investment Companies. Lexis Nexis Matthew Bender.

Most traditional brokerage firms offer discount options and compete heavily for client volume due to a shift towards what is a brokerage firm method of trading. The forms of compensation may be sales loads from investors, or Rule 12b-1 fees or servicing fees paid by the mutual funds. Brokerage firms Financial services. Many broker-dealers also serve primarily as distributors for mutual fund shares.

Regulation of Investment Companies. Thomas Smith 6 March Many broker-dealers also serve primarily as distributors for mutual fund shares. Comparison of online brokerages in the United States.

Traditional brokerage firms have also become a source of up-to-date live stock prices and quotes. These broker-dealers may be compensated in numerous ways and, like all broker-dealers in the United States, are subject to compliance with requirements of the US Securities and Exchange Commission and one or more self-regulatory organizationssuch as the Financial Industry Regulatory Authority FINRA. Brokerage firms what is a brokerage firm a clientele of investors who trade public stocks and other securities, usually through the firm's agent stockbrokers.

Other ways to lower costs for these brokers what is a brokerage firm by executing orders only a few times a day by aggregating orders from a large number of small investors into one or more block trades which are made at certain specific times during the day. The staff of this type of brokerage firm is entrusted with the responsibility of researching the markets to provide appropriate recommendations, and in doing so they direct the actions of pension fund managers and portfolio managers alike. British Columbia Securities Commission.

Many broker-dealers also serve primarily as distributors for mutual fund shares. Views Read Edit View history. A discount broker or an online broker is a firm that charges a relatively small what is a brokerage firm by having its clients perform trades via automated, computerized trading platforms rather than by having an actual stockbroker assist with the trade. These broker-dealers may be compensated in numerous ways and, like all broker-dealers in the United States, are subject to compliance with requirements of the US Securities and Exchange Commission and one or more self-regulatory organizationssuch as the Financial Industry Regulatory Authority FINRA.

By using this site, you agree to the What is a brokerage firm of Use and Privacy Policy. Thomas Smith 6 March Retrieved from " https: Since investor money is pooled before stocks are bought or sold, it enables investors to contribute small amounts of cash with which fractional shares of specific stocks can be purchased. From Wikipedia, the free encyclopedia.

Comparison of online what is a brokerage firm in the United States. British Columbia Securities Commission. These firms also offer margin loans for certain approved clients to purchase investments on creditsubject to agreed terms and conditions. Retrieved 10 October They help lower costs in two ways:.