A discount brokerage is a facility in which brokerage services are provided at substantially lower rates than that of full-fee brokerages. This does not mean that the individual is getting lower quality service. They are simply getting a discounted price on the services provided. Subsequently, the discount brokerage might not offer all of the services that other full-service brokerage companies can.
The rate of utilization of discounted brokerage services has gone up exponentially and is causing issues with some brokerage services because they are not receiving the same utilization that they used to. Furthermore, these services are losing the income that comes along with their employment.
However, one of the advantages for seasoned investors is that a discount brokerage can often offer more advanced brokering systems in which the client is in control of a majority of the deals. This means that they can buy and sell as desired without the consultation of their broker. Those who are just getting into the investment world often avoid discount brokerage services because they are not yet skilled in researching and making informed decisions about buying and selling investment opportunities.
Discount brokerages can be found in the field of stocks, as well as the field of real estate. These are two of the most competitive areas of brokerage there are and they are very important when it comes to overall economy. Discount brokerages are firms which can save seasoned investors substantial money and increase the overall benefits of their transactions.