Discount Broker

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DEFINITION of 'Discount Broker'

A stockbroker who carries out buy and sell orders at a reduced commission compared to a full-service broker, but provides no investment advice.

BREAKING DOWN 'Discount Broker'

It used to be that only the wealthy could afford a broker and access to the stock market. The internet has brought an explosion of discount brokers which let you trade at a smaller fee. However, it is important to remember that discount brokers don't provide personalized advice. Because of discount brokers, nearly anybody can afford to invest in the market.

For those who wish to do their own research or don't want to invest a lot of money, a discount broker is an excellent way to invest.

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RELATED FAQS
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    Charles Schwab Corp. (SCHW) is a savings and loan holding company that operates in several areas of financial services through ... Read Full Answer >>
  2. How can an investor profit from the increase in popularity of discount brokerages?

    Discount brokers generally don't improve profits by generating higher returns, although many purport to do just that. Rather, ... Read Full Answer >>
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    The process of purchasing over-the-counter (OTC) stocks is different than purchasing stock from companies on the NYSE and ... Read Full Answer >>
  4. Where do penny stocks trade?

    Generally, penny stocks are traded through the use of the Over the Counter Bulletin Board (OTCBB) and through pink sheets. ... Read Full Answer >>
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