PLATFORMS FOR
CAPITAL MARKET 

 Presented By: Group 6 

  OBJECTIVES 

After the sessions, the student is expected to:  

Describe how to trade in capital market  
Make their own online trading account  
Identify the advantages and disadvantages of conventional and online
trading
 CONVENTIONAL BROKERAGE 

BROKERAGES FIRM - A
BROKERAGES - It provides
brokerage firm or brokerage company
intermediary services in various areas,
is a middleman who connects buyers
e.g., investing. obtaining a loan, or
and sellers to complete a transaction
purchasing real estate. A broker is an
for stock shares, bonds, options, and
intermediary who connects a seller
other financial instruments Brokers
and a buyer to facilitate a transaction.
are compensated in commissions or
Individuals or legal entities can act as
fees that are charged once the
brokers.  
transaction has been completed. 
Most discount brokerages now offer their customers zero-commission stock trading.
The companies make up for this loss of revenue from other sources, including
payments from the exchanges for large quantities of orders and trading fees for other
products like mutual funds and bonds.
  Types of Brokerage 

 Full-Service Brokerage - Full-service brokerages,

also known as traditional brokerages, offer a range of
products and services including money management,
estate planning, tax advice, and financial
consultation. These companies also offer stock
quotes, research on economic conditions, and market
analysis. Highly trained and credentialed professional
brokers and financial advisers are available to advise
their clients on money matters. 
  Types of Brokerage 

 Discount Brokerage - A discount brokerage is an online

brokerage. The online broker's automated network is the
middleman, handling buy and sell orders that are input
directly by the investor.  

 Robo-Advisors - A robo-advisor is an online investment

platform that uses algorithms to implement trading strategies
on behalf of its clients in an automated process.
  Types of Brokerage 

 Independent brokerages - Independent

brokerages are not affiliated with a mutual fund
company. They may be able to recommend and
sell products that are better for the client. They are
required to hold to the fiduciary standard, meaning
that they must recommend the investments most in
the client's best interest.
  Types of Brokerage 

 Captive Brokerage - A captive brokerage is

affiliated with or employed by a mutual fund
company or insurance company and can sell
only their products. These brokers are
employed to recommend and sell the range of
products that the mutual or insurance company
owns.
BROKERAGE CHECKING ACCOUNT - A brokerage account is an investment
account that allows you to buy and sell a variety of investments, such as stocks,
bonds, mutual funds, and ETFs. Whether you're setting aside money for the future
or saving up for a purchase, you can use your funds whenever and however you
want
 ADVANTAGES AND DISADVANTAGES OF
BROKERAGE CHECKING ACCOUNT
PROS  CONS
• Easily move money from within your account to • Investment returns aren't guaranteed  
start buying investment securities   • Any invested funds may lose value, depending on
• Access to a large network of no-fee ATMs   investments and market conditions  

• Online research tool access, like computer trading
software and fund research  
• Reduced-fee structure for banking services, like
account minimums and overdrafts
• Financial advisors may charge fees for planning
services  
• Do not usually offer lending products, like car loans
or mortgages  
• Limited in-office services-no cash withdrawals or
cashier's checks