Discount brokers fall under the category ofretail firms. Retail firms cater to individual investors and often provide services such as executing trades at reduced commission rates, but they typically do not offer financial advice or portfolio management. Discount brokers provide online platforms for self-directed investors.
* A. Institutional firms: These firms serve large-scale investors such as pension funds or mutual funds, not individual investors.
* C. Integrated firms: These firms operate in both retail and institutional markets, but discount brokers are specifically associated with retail services.
* D. Boutique firms: These firms specialize in niche markets or services, such as wealth management or specific industry securities, rather than general retail brokerage.