Brokerage house is another term used for brokerage firm.
This is basically a company which has been licensed to perform the same functions as that of a broker. The firm or house serves as an intermediary between the buyer and seller.
A brokerage house is composed of brokers who manage the investments of clients. The level of involvement of a broker depends on the preference of the investor.
Traditional brokers offer a wide range of services, which includes providing financial advice and information on various stocks and securities. Brokerage houses may provide information on market research and strategies.
This arrangement is best-suited to investors who do not wish to spend their time researching on stocks. On the other hand, discount brokers are tasked with carrying out the instructions of investors on the purchase or sale of securities. Commissions are charged for these transactions. Rates may depend on how quickly the broker can get the job done, as well as on how personalized the service is.
As its name suggests, discount brokerage involves the imposition of lower fees than those required under traditional brokerage. Commissions may also be charged for services such as money transfer and maintenance of inactive accounts. Fees may also be charged when accounts are closed.
Brokerage houses may specialize in certain types of investments, whereas others may offer a greater variety. Brokerage houses also have a variety of methods for executing trades. For certain firms, it may be possible to conduct transactions over the phone or with the use of the Internet.
