Moneyzine
Contents
/Investment Guides /Online Brokerage House

Online Brokerage House

Moneyzine Editor
Author: 
Moneyzine Editor
1 mins
September 20th, 2023
Advertiser Disclosure

Definition

The term online brokerage house refers to a firm that charges a commission for providing online services such as the buying and selling of securities. In order to keep costs low, online brokerage houses interact with their clientele via their website.

Explanation

The primary service provided by online brokers is the buying and selling of securities. Most discount brokers are online brokers, and the commissions charged for conducting transactions will be lower than a full-service brokerage house. Online brokers first became popular during the rapid growth of the internet in the mid to late 1990s, as communication technologies improved the speed at which transactions could be completed.

Since they provide no other service other than the buying and selling of securities, online brokerage houses compete for clients by charging low transaction fees. In addition to common and preferred stock, investors can buy and sell bonds, options, as well as futures contracts.

Related Terms

full-service brokerage house, discount brokerage house, brokerage house, block trade

Explore Investing Further

Related Content

  • Biden Or Trump: Who Is Better For The Economy And Stocks?
    Yup. This is one of those articles. It's an election year, and here in the U.S., we get to decide which old dude who’s been alive long enough to remember when there were only 48 states in the U.S. will be the leader of the free world.
    March 19th, 2024
  • When it comes to strategic business planning, accounting is front and center, shaping the course of action. At least it should be.
    March 14th, 2024
  • DRIP Brokers: Best Brokers for Dividend Investing for April 2024
    Reinvesting dividends could mean compound growth for your portfolio. But reinvesting them manually can be a hassle. This is why you could benefit from a dividend reinvestment plan (DRIP).
    March 12th, 2024
  • How To Invest in Real Estate Without Becoming a Landlord
    We all know that in order to build wealth and prepare for retirement, investing is the key. However, it can be hard to figure out what to invest in and how to put your money to good use. One of the most talked about ways to build wealth is owning property and being a landlord to bring in passive income. But what if you don’t want to do that? You can still invest in real estate!
    March 6th, 2024
  • Investing In Nature: The Closest You'll Get To Your Money Growing On Trees
    ESG (Environmental, Social, and Governance) has become a polluted word for many traders and investors - but that doesn't mean it's going completely away. Nor does that mean you can't profit from nature or sustainable practices. But there are some opportunities in the regenerative ag, conservation, and green real estate spaces.
    February 29th, 2024

Contributors

Moneyzine 2024. All Rights Reserved.