Brokerage

Business, Legal & Accounting Glossary

Definition: Brokerage


Quick Summary of Brokerage


A stock broker’s business; charges a fee to act as an intermediary between buyer and seller.



What is the dictionary definition of Brokerage?

Dictionary Definition


The business or service of acting as a broker.

  1. A business, firm, or company whose business is to act as a broker (e.g, stockbroker).
  2. The commission paid to a broker.

Full Definition of Brokerage


Brokerage refers to a licensed firm or an individual (known as a broker) that buys and sells stocks for its clients. There are several types of brokerage: the choice of brokerage depends upon how involved the individual investor wants to be.

  • Full-service brokerage – provides research and advice to clients and sometimes, financial planning. This type of brokerage works for the investor with little or no inclination to spend time researching stocks. An example of a full-service brokerage is Salomon Smith Barney.
  • Discount brokerage – provides fewer services and has lower commission rates. With this type of brokerage, the client does more of the work. An example of a discount brokerage is Charles Schwab.
  • Deep discount brokerage – usually only executes trades and offers no or very few other services. The individual investor is the most involved with this type of brokerage. An example of a deep discount brokerage is Scottrade.

Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/brokerage/
Modern Language Association (MLA):
Brokerage. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. December 01, 2020 https://payrollheaven.com/define/brokerage/.
Chicago Manual of Style (CMS):
Brokerage. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/brokerage/ (accessed: December 01, 2020).
American Psychological Association (APA):
Brokerage. PayrollHeaven.com. Retrieved December 01, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/brokerage/

Definition Sources


Definitions for Brokerage are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 16th February, 2020 | 2 Views.