Brokerage firm/broker that charges a lower commission on the buying and selling of financial instruments than a full-commission broker. A discount broker typically has limited research capabilities and does not give investment advice to its clients. iscount Rate In U.S. banking, this is rate that the Federal Reserve charges member banks for advances.
A broker who provides a â€œno-frillsâ€ service for buying and selling securities. In practice, this means that the commission rates charged are lower, as no investment advice, analysis or research is offered.
A discount broker represents the seller for a reduced fee or commission compared to the fees charged by a full-service broker. In exchange for a reduced fee, the discount broker may not do one or more of the following: show the home, advertise the home, field calls from potential buyers.
A stock broker who will not provide personalized portfolio advice, but will charge cheaper commission fees, and will make a variety of order-entry vehicles available to clients, such as via computer or by automated telephone system.
A service provided by an intermediary* where no advice is taken. Also known as an “execution only” service, the broker will buy a product on behalf of an investor after the investor has chosen which product they would like to purchase. Discount brokers usually waive or discount the initial charge, as no advice has been provided. This service is often available by post and rather than pay commission you are charged a one off transaction charge.
Like the full-service broker, the discount broker executes orders to buy and sell securities. Commission rates are often significantly lower than those charged by a full-service broker. A discount broker does not provide research services or advice to clients.
As opposed to full service brokers, a discount broker charges a lower fee for executing buy and sell orders at the direction of the investor. Generally, discount brokers do not provide investment advice.
Firms that perform a traditional brokerage role as intermediary and do not provide research advice to clients. They charge lower trading fees than full-service brokers, which include research in their range of services.
A brokerage house charging commissions lower than those charged by a full-service broker. Discount brokers provide execution of trades only and do not give investment advice. Related investment services are sometimes available for an additional fee.