Online Brokerage House Definition

Forex Glossary

Definition

The word on the web brokerage house identifies your business that charges a commission to providing online services like the buying and sale of securities. As a way to keep costs low, online brokerage houses socialize with their customers via their site.

Explanation

The key service offered by internet brokers could be the buying and sale of securities. Many discount brokers are on the web brokers, and also the commissions charged for running trades will be less compared to the usual full size brokerage house. On the web brokers first became popular throughout the accelerated rise of the net from the mid to late 1990s, as communicating technologies improved the rate in which transactions can be performed.

Since they provide no additional service aside from the selling and buying of securities, on line brokerage houses compete for customers by charging low trade fees. Along with preferred and common stock, traders can purchase and sell bonds, options, in addition to futures .