Definition

A firm that acts as the middleman between buyers and sellers, taking a nice cut of every transaction for the privilege of connecting people who could probably find each other on Craigslist. These companies facilitate trades in stocks, real estate, insurance, or commodities, providing expertise and access to markets in exchange for commissions. They're the reason why 'free' trading apps still somehow make billions.

Example Usage

I opened an account with an online brokerage that advertises zero commissions, though somehow they still make money from my trades through something called 'payment for order flow.'

Source: Financial services terminology

Related Terms

Beginner

Index Fund

A fund that buys every stock in an index because picking individual winners is apparently too hard even for professionals. It's the financial equivalent of ordering one of everything on the menu because you can't decide, and somehow it works better than almost every other strategy.

💰 Finance / Accounting
Advanced

off-balance-sheet

Assets, liabilities, or financing activities that don't appear on the balance sheet through various legal structures and accounting loopholes. It's the financial equivalent of having a secret family—technically possible, but eventually problematic.

💰 Finance / Accounting
Beginner

appreciation

When an asset increases in value over time without you lifting a finger—the financial equivalent of your wine collection getting better with age. It's what homeowners brag about at parties and what makes early Bitcoin investors insufferable. The opposite of depreciation, and the reason everyone thinks they're a real estate genius in a bull market.

💰 Finance / Accounting
Intermediate

VAT

Value Added Tax, the European way of making you pay incrementally for everything at each stage of production and distribution. Unlike American sales tax that hits you once at checkout, VAT is baked into the price at every step, making it simultaneously more transparent and more insidious. British tourists love explaining this to confused Americans at duty-free shops.

💰 Finance / Accounting
Intermediate

Chinese wall

Information barriers within financial institutions designed to prevent conflicts of interest, like keeping the investment banking side from sharing insider information with the trading desk. Also increasingly called 'ethical walls' because geography.

💰 Finance / Accounting
Beginner

accounting

The ancient art of recording, classifying, and summarizing financial transactions, then presenting them in ways that either enlighten or confuse everyone involved. It's the language of business, spoken fluently by people who find tax codes exciting. Keeps companies legal, investors informed, and provides employment for millions who really, really like spreadsheets.

💰 Finance / Accounting

Translate This Term

See “brokerage” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

Try the Translator

Share This Term

Post on XShare on FacebookShare on LinkedIn

Discover a Term

Advanced

graduated rights

Term sheet provisions where investor rights decrease as the company hits performance milestones. A way to say 'we trust ...