Securities Brokers


The 6,700 securities brokerages in the US generate the majority of revenue through asset management fees or by charging commissions and transaction fees on client trades. Brokerages can also earn net interest revenue (difference between interest earned and brokerage interest expense) and fees for providing financial planning and advisory services. In addition, firms may receive “payment for order” for directing trades through a particular exchange or channel.

Regulated Environment

The securities industry is highly regulated at the federal and state level.

Growth In Self-Directed Investors And Online Brokerage

The popularity of self-directed and online trading continues to grow, driven by investors’ increasing desire for control.