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A '''discount brokerage''' is a business that charges clients significantly lower fees than a traditional [[brokerage firm]] but without providing financial advice. Discount brokers typically allow investors as well as consumers of [[financial services]] to buy and sell [[On-line trading|on-line]] while offering comparatively fewer services and/or support.

==Securities==
In the securities industry, a [[brokerage]] helps clients buy and sell [[securities]] on an appropriate exchange. Before the advent of discount brokers it used to be that only the wealthy could afford a broker and access to the stock market. But discount brokers offered commissions at a fraction of their full-service counterparts. During the 1980s-90s, for instance, discounters regularly permitted investors to purchase shares at one-third the former cost, with deep discounters going to one-quarter or even lower.<ref>{{Cite web|url=https://www.nytimes.com/1990/06/17/business/all-about-discount-brokers-now-fewer-firms-are-chasing-small-investors-discount.html?pagewanted=all|title=All About: Discount Brokers; Now Fewer Firms Are Chasing Small Investors Discount Brokers|last=HYLTON|first=RICHARD D.|date=June 17, 1990|publisher=New York Times|access-date=March 19, 2016}}</ref> This allowed investors with modest sums of money to have the same access to the stock market as the wealthy. The development of internet and [[electronic trading]] further helped to develop discount brokers, dropping commissions to a small fraction of what they once were.

Discount brokerages usually allow their clients to trade for their own account with little or no interaction with a live broker. In addition some brokers offer no-commission trades to their clients that hold a balance greater than a specific amount with them.

Typically, discount brokers provide advanced [[electronic trading platform]]s which may be appealing to frequent and active traders but may deter some novice investors. Discount brokers typically do not provide financial advice or guidance and provide instead a service aimed at self-directed investors. Traditional brokers in contrast will often provide financial advice and investment planning as well as related [[wealth management]] services.

All brokerage firms, including discount brokerage and full-service discount brokerage are regulated in the same way and are licensed by each country's [[Financial regulatory system|financial regulatory authority]].

==Real estate==
In the real estate industry, a discount brokerage helps clients buy and sell [[real estate]] properties, often listed on the [[Multiple Listing Service|MLS]]. The growth of discount real estate brokers has caused considerable concern with their full-service, full-fee competitors. In the US, the [[US Justice Department]] settled in 2008 with the [[National Association of Realtors]] to allow discount brokers to have access to the same MLS home listings as full-service agencies<ref>{{cite news |url=
https://www.usatoday.com/money/economy/housing/2008-05-27-online-real-estate-agents-settlement_N.htm
|title= Online Real Estate Agents Get Equality|publisher=USA Today|accessdate=22 February 2009 | first=Edward | last=Iwata | date=30 May 2008}}</ref>

==Financial services==

Discount brokers in the [[financial services]] sector provide [[insurance]] products, such as [[life insurance]] and [[car insurance]], on a discounted basis. The main difference they present to a typical [[insurance broker]] is that they work on a lower commission basis, and as such are often cheaper.<ref>{{cite news |url=
http://www.moneysavingexpert.com/insurance/cheap-life-insurance
| date=September 2014 |title= Cheap life insurance|publisher=Money Saving Expert|accessdate=17 October 2014}}</ref>
Instead of commission they charge one-off fees for their services, but do not provide financial advice.

==See also==
* [[Comparison of online brokerages in the United States]]
* [[Flat fee MLS|Reduced-commission MLS Listings]]
* [[Real estate broker]]

==References==
{{reflist}}

[[Category:Real estate]]
[[Category:Financial services]]
[[Category:Insurance]]
[[Category:Brokerage firms]]

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