What is Brokerage Firm? A Guide for Beginners by Blue Fund
A brokerage firm which can also be called simply as brokerage is a company or institute which deals with the financial matters of their customers. Actually, they facilitate the buyer and the seller in setting up their financial deals or selling and buying of financial securities. These brokerage firms have different stockbroker agents in the company who assists the clients of the company to invest in public stocks and different other securities. A simple brokerage firm just deals with the selling and buying between two parties and get their agreed commission whereas a “full brokerage” firm provides some extra services as well.
A full brokerage firm also gets the predefined commission or fixed pay when the deal is done, but they also search the market’s trend and its ups and downs and on the basis of their research, they give proper advice and recommendations to clients about where to invest and when to invest. Or they can also assist the clients when to buy and when to sell.
For trusted clients, a full brokerage firm also offers a margin loan so that they can purchase anything or invest that amount in any business as per the agreement. While if these brokerage firms also offer the services of buying and selling of investments for their clients then we call them broker-dealer.
The main purpose of this type of firm is not only to provide brokerage service to its clients but they also try their best to get some profit for their clients as well. There is another term used as “discount broker” which refers to an online broker firm that provides an automated system and software to perform the transactions to its clients by having a small commission from their investments. In this way, the buyer or seller don’t need deal directly with the actual stockbroker and they perform their transactions or trade using that automated computerized program.
If you are in the UK then you can find a professional brokerage service by a renowned company Blue Fun which can assist you very well in your trade and investments. You can also get their mobile app for online service and recommendations.