What is the primary function of a brokerage firm?

The primary function of a brokerage firm is to facilitate the buying and selling of investments on the stock exchange. Brokerage firms act as intermediaries between buyers and sellers of securities, such as stocks, bonds, and mutual funds. They enable individual and institutional investors to execute trades, providing access to the markets where these investments are bought and sold.

In addition to executing trades, brokerage firms may also offer tools and platforms that help investors analyze market trends, track their portfolios, and make informed investment decisions. Their core business depends on facilitating transactions, which makes them essential players in the financial markets.

While financial advice, savings account offerings, and retirement fund management are services that may be provided by some firms, they are not the primary functions of brokerage firms. Instead, these services typically fall under the purview of financial advisory firms or banks that specialize in those areas.