B2 noun Neutral

brokerage

/ˈbroʊ.kər.ɪdʒ/

A brokerage is an organization or business that acts as an intermediary between a buyer and a seller, usually charging a commission for the service. It can also refer to the fee charged by a broker or the business of acting as a broker in financial or real estate markets.

Examples

3 of 5
1

I opened a new account with an online brokerage to manage my stock investments.

I started a new account at an internet-based trading firm to handle my shares.

2

The acquisition was facilitated by a leading global brokerage specializing in high-value assets.

The purchase was assisted by a major international firm that handles expensive property.

3

Is that brokerage still charging high fees for simple trades?

Does that company still ask for a lot of money when you buy or sell stocks?

Word Family

Noun
brokerage
Verb
broker
Adjective
brokered
Related
broker
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Memory Tip

Think of the suffix '-age' as indicating a 'package' of services provided by a 'broker'.

Quick Quiz

Before buying the apartment, we had to pay a significant _____ fee to the agency.

Correct!

The correct answer is: a

Examples

1

I opened a new account with an online brokerage to manage my stock investments.

everyday

I started a new account at an internet-based trading firm to handle my shares.

2

The acquisition was facilitated by a leading global brokerage specializing in high-value assets.

formal

The purchase was assisted by a major international firm that handles expensive property.

3

Is that brokerage still charging high fees for simple trades?

informal

Does that company still ask for a lot of money when you buy or sell stocks?

4

Sociological research suggests that brokerage roles are essential for information flow between isolated groups.

academic

Studies in sociology show that acting as a middleman is vital for sharing info between separate groups.

5

The company reported a significant increase in revenue from its real estate brokerage division.

business

The firm earned much more money from its department that helps people buy and sell houses.

Word Family

Noun
brokerage
Verb
broker
Adjective
brokered
Related
broker

Common Collocations

brokerage firm A company that facilitates trades
brokerage fee The commission paid for a broker's services
brokerage account An investment account held at a licensed financial institution
real estate brokerage A company that helps people buy and sell property
discount brokerage A firm that carries out trades at a lower cost without giving advice

Common Phrases

full-service brokerage

A firm that provides investment advice and research in addition to trading

prime brokerage

A bundle of services offered by investment banks to hedge funds

power brokerage

The exercise of influence or control in political or business circles

Often Confused With

brokerage vs broker

A 'broker' is the individual person performing the trade, while 'brokerage' is the company or the business activity itself.

brokerage vs arbitrage

Arbitrage is the practice of profiting from price differences in different markets, not the service of acting as a middleman.

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Usage Notes

Use 'brokerage' when referring to the institution (the firm) or the fee/process. It is most commonly used in the context of finance (stocks) and real estate.

⚠️

Common Mistakes

Learners sometimes use 'brokerage' to refer to a single person; use 'broker' for the person. Also, do not use it as a verb; use 'to broker' instead.

💡

Memory Tip

Think of the suffix '-age' as indicating a 'package' of services provided by a 'broker'.

📖

Word Origin

Derived from the Middle English word 'brocour' (a small trader) with the suffix '-age' denoting a business or service fee.

Grammar Patterns

Countable noun when referring to a company (e.g., 'Three different brokerages'). Uncountable noun when referring to the service or fee (e.g., 'He works in brokerage').
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Cultural Context

In many Western countries, having a personal brokerage account is a common way for middle-class individuals to save for retirement.

Quick Quiz

Before buying the apartment, we had to pay a significant _____ fee to the agency.

Correct!

The correct answer is: a

Related Words

to

A1

Used to indicate the place, person, or thing that someone or something moves toward. It can also mark the recipient of an action or the limit of a range.

and

A1

A primary conjunction used to connect words, phrases, or clauses that are grammatically equal. It indicates addition, a sequence of events, or a relationship between two things.

a

A1

A word used before a singular noun that is not specific or is being mentioned for the first time. It is used only before words that begin with a consonant sound to indicate one of something.

that

A1

This word is a demonstrative pronoun used to indicate a specific person, object, or idea that is further away in space or time from the speaker. It is also used to refer back to something that has already been mentioned or to introduce a clause that identifies something.

I

A1

The pronoun 'I' is used by a speaker or writer to refer to themselves as the subject of a verb. It is the first-person singular subject pronoun in English and is always capitalized regardless of its position in a sentence.

for

A1

Used to show who is intended to have or use something, or to explain the purpose or reason for an action. It is also frequently used to indicate a specific duration of time.

not

A1

A function word used to express negation or denial. It is primarily used to make a sentence or phrase negative, often following an auxiliary verb or the verb 'to be'.

with

A1

A preposition used to indicate that people or things are together, in the same place, or performing an action together. It can also describe the instrument used to perform an action or a characteristic that someone or something has.

he

A1

A pronoun used to refer to a male person or animal that has already been mentioned or is easily identified. It functions as the subject of a sentence.

you

A1

Used to refer to the person or people that the speaker is addressing. It is the second-person pronoun used for both singular and plural subjects and objects.

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