Stock Market Investors » Glossary of Stock Terms » What is a Discount Broker?

What is a Discount Broker?

When you start investing you should consider the possibility of using the services of a broker. There are different types of brokers and one of them is the so called discount broker. The latter will greatly facilitate your investing activities, since s/he will assist you in the buying and selling of securities. However, you should not expect from him/her to make recommendations regarding your investment decisions. Discount brokers are usually referred to as order takers. In return to their services they charge a commission fee. However, the amount they will charge you is significantly less than the commission of a full service broker.

An example of a discount broker is online brokers with few exceptions.

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