What Is a Brokerage Firm?

A brokerage firm or brokerage company is a middleman who connects buyers and sellers to complete a transaction for stock shares, bonds, options, and other financial instruments.

What Is a Brokerage Firm?

A brokerage firm or brokerage company is a middleman who connects buyers and sellers to complete a transaction for stock shares, bonds, options, and other financial instruments.

Brokers are compensated in commissions or fees that are charged once the transaction has been completed.

Most discount brokerages now offer their customers zero-commission stock trading. The companies make up for this loss of revenue from other sources, including payments from the exchanges for large quantities of orders and trading fees for other products like mutual funds and bonds..