brokerage firm

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brokerage firm

A stock trader consults with a representative at a brokerage firm.

Definition

Noun: A company or business that acts as an intermediary in transactions, typically involving financial assets like stocks or bonds, charging a fee for its services. It facilitates trades between buyers and sellers.

Usage

A brokerage firm is a professional entity that executes buy and sell orders on behalf of clients. It provides a platform and expertise for trading securities. - She opened an investment account with a reputable brokerage firm. - The brokerage firm charged a commission for handling the stock transaction.

Advanced Usage
  • "full-service brokerage firm": A firm that offers a wide range of services including investment advice, research, and retirement planning, in addition to trade execution.
    • He prefers a full-service brokerage firm for personalized financial guidance.
  • "discount brokerage firm": A firm that focuses primarily on executing trades at a lower commission cost, offering fewer advisory services.
    • For independent traders, a discount brokerage firm is often the most cost-effective choice.
Variants and Related Words
  • Brokerage (n): The business or service of acting as a broker; also, the fee charged for this service.
    • The brokerage for the deal was 2%.
  • Broker-Dealer (n): A firm or individual that acts as both a broker (agent for others) and a dealer (principal trading for its own account).
    • The company is registered as a broker-dealer with the SEC.
Synonyms
  • Securities firm: A company dealing in the trading of securities.
  • Brokerage house: Another term for a brokerage firm.
Related Phrases
  • To execute through a brokerage firm: To carry out a trade via such a company.
    • All stock trades must be executed through a licensed brokerage firm.
brokerage firm

A stock trader consults with a representative at a brokerage firm.

Noun
  1. a stock broker's business; charges a fee to act as intermediary between buyer and seller

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