Brokerage Company

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Definition of 'Brokerage Company'

A brokerage company is a financial institution that facilitates the buying and selling of securities between buyers and sellers. The company charges a fee for its services, which is typically a percentage of the transaction value.

Brokerage companies can be either full-service or discount. Full-service brokerage companies provide a wide range of services to their clients, including research, advice, and trading execution. Discount brokerage companies typically offer a limited range of services and charge lower fees.

Brokerage companies play an important role in the financial markets by providing liquidity and facilitating the flow of capital. They also help investors to diversify their portfolios and achieve their financial goals.

There are a number of factors to consider when choosing a brokerage company. These include the company's reputation, fees, services offered, and technology platform. It is important to choose a brokerage company that is right for your needs and risk tolerance.

Here are some of the benefits of using a brokerage company:

* Access to a wide range of securities
* Research and advice from financial professionals
* Trading execution
* Diversification of your portfolio
* Help with achieving your financial goals

If you are considering investing in the stock market, a brokerage company can be a valuable resource. By choosing the right brokerage company, you can make the most of your investment dollars and achieve your financial goals.

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