What is a Discount Brokerage Account?
A discount brokerage account is one of the most common ways for individual investors to invest their money.
Instead of having to deal with a bank or a traditional investment broker, people now have the option of opening a discount brokerage account online.
Typically speaking, a discount brokerage account is a form of investment account with an online investment portal. These brokerages allow people to deposit funds, open margin accounts, and buy and sell securities through their online control panel.
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The exact level and scale of investing and trading services provided varies across discount brokerage firms. Some brokerage accounts allow you to trade or invest in stocks, bonds and foreign assets.
In general, brokerage accounts charge commissions and fees which are much lower than those charged by traditional investment brokers.
There are many different companies that offer a discount brokerage account.
Some of these are dedicated companies that have sprung up in the Internet age to offer these services to their customers. Others, are offshoots or services offered by the major banks. When many people were moving money out of banks to invest with a discount brokerage account several of the major players reacted by offering their own online, low-fee investment services.
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