A firm or individual (broker/ stockbroker) that facilitates securities trading at reduced costs (a discount) compared to a full-service broker. However, its range of services is narrower than other types of brokerage (particularly full-service brokers). Discount brokers execute buy and sell orders for clients at affordable rates.

For cost considerations, discount brokers typically operate using online portals: investors can open and manage accounts and place orders online without having to interact directly without the need to visit any physical facilities.