What are brokerage firms?

Brokerage firms are financial institutions that facilitate the buying and selling of securities, such as stocks, bonds, and mutual funds, on behalf of clients. They act as intermediaries between buyers and sellers, providing services that may include investment advice, research, and portfolio management. Brokerage firms can be full-service, offering comprehensive financial planning and advisory services, or discount, providing basic trading services with lower fees. They play a crucial role in financial markets by ensuring liquidity and enabling investors to access various investment opportunities.