brokerage: meaning, definition, pronunciation and examples
C1Formal/Business/Financial
Quick answer
What does “brokerage” mean?
A company or service that arranges transactions between a buyer and seller, especially in finance and property, for a commission or fee.
Audio
Pronunciation
Definition
Meaning and Definition
A company or service that arranges transactions between a buyer and seller, especially in finance and property, for a commission or fee.
The business, activity, or service of acting as a broker; also refers to the commission or fee charged for this service. Can extend to any intermediary service connecting parties.
Dialectal Variation
British vs American Usage
Differences
No significant difference in core meaning. In US business English, 'brokerage' is slightly more common for stock-trading firms (e.g., 'discount brokerage'), while UK might use 'stockbroker' or 'broking firm' equally. In property, both use 'estate agency' (UK) and 'real estate brokerage' (US).
Connotations
Generally neutral. In high finance, can connote institutional scale. 'Discount brokerage' is a standard US term for low-commission trading services.
Frequency
Higher frequency in American financial/business media due to the prominence of its stock trading industry.
Grammar
How to Use “brokerage” in a Sentence
(operate/use) a brokeragepay a brokerage (of/on)work for/in a brokerageaccount with a brokeragebrokerage that specializes inbrokerage handling the dealVocabulary
Collocations
Examples
Examples of “brokerage” in a Sentence
verb
British English
- They decided to brokerage the deal themselves. (Rare/Non-standard)
American English
- The firm brokerages billions in trades annually. (Rare/Non-standard)
adverb
British English
- (No standard adverbial form)
American English
- (No standard adverbial form)
adjective
British English
- The brokerage agreement was signed yesterday. (Attributive use of noun)
- He works in a brokerage role.
American English
- She reviewed the brokerage fees carefully.
- It was a standard brokerage contract.
Usage
Meaning in Context
Business
The company uses a reputable brokerage to handle all its mergers and acquisitions.
Academic
The study examined the economic role and regulatory challenges of online brokerages.
Everyday
I opened a brokerage account to start investing in stocks.
Technical
The brokerage's execution platform offers direct market access with low latency.
Vocabulary
Synonyms of “brokerage”
Strong
Neutral
Watch out
Common Mistakes When Using “brokerage”
- Using 'brokerage' as a synonym for 'broker' (person). Incorrect: 'I spoke to the brokerage.' Correct: 'I spoke to the broker at the brokerage.'
- Misspelling as 'brokeridge' or 'brokerrage'.
FAQ
Frequently Asked Questions
A 'broker' is the person or individual agent. A 'brokerage' is the company or firm that employs brokers, or the business activity itself.
No. While most common in finance (stocks, bonds) and real estate, it can refer to any intermediary service, such as insurance brokerage, freight brokerage, or even marriage brokerage.
It has two main meanings: 1) the company (countable), 2) the commission/fee (uncountable). Context clarifies which. e.g., 'Pay the brokerage' (fee), 'Work at a brokerage' (firm).
Standard English does not use 'brokerage' as a verb. The correct verb is 'to broker'. Using 'brokerage' as a verb is considered non-standard or jargon.
A company or service that arranges transactions between a buyer and seller, especially in finance and property, for a commission or fee.
Brokerage is usually formal/business/financial in register.
Brokerage: in British English it is pronounced /ˈbrəʊkərɪdʒ/, and in American English it is pronounced /ˈbroʊkərɪdʒ/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “Clip the ticket (slang for taking a brokerage commission)”
Learning
Memory Aids
Mnemonic
Think: BROKER + AGE. A BROKER, when they reach a certain AGE (or level of establishment), runs a BROKERAGE.
Conceptual Metaphor
A BRIDGE or GATEWAY (connecting two separate parties/realms).
Practice
Quiz
In which context is the term 'brokerage' LEAST likely to be used?