What is a brokerage and how does it work?

A brokerage is just a company that acts as a middleman to facilitate transactions. It is the entity that helps to arrange a deal, and it receives a commission or fee for acting as a trusted third party. When investing, it would be a nightmare if you had to contact every company directly each time you wanted to invest and buy shares.

What is share trading?

Share trading is a way to build wealth. When you trade shares you’re buying and selling a portion of a company on a share market (or a stock exchange). Each share has value. The value of a share is determined by the company’s present performance.

What are brokerage fees?

In rare instances, brokers may collect fees from both the insurer and the individual buying the insurance policy. In the financial securities industry, a brokerage fee is charged to facilitate trading or to administer investment or other accounts. The three main types of brokers that charge brokerage fees are full-service, discount, and online.

What is an online brokerage account?

Online brokerage account If you want to purchase and manage your own investments, a brokerage account at an online broker is for you. An investment account with an online brokerage company enables you to buy and sell investments through the broker’s website. Discount brokers offer a range of investments, including stocks, mutual funds and bonds.