What does a retail brokerage primarily deal with?

A retail brokerage primarily deals with individual investors, providing them with access to the financial markets to buy and sell securities like stocks, bonds, and mutual funds. The services offered by a retail brokerage are designed for non-professional traders and investors who need assistance with their investment decisions, guidance on portfolio management, and access to various investment products.

Retail brokerages typically offer lower trading fees and user-friendly platforms that cater to the needs of individual clients. This emphasis on serving private investors distinguishes retail brokerages from other types of institutions, such as those that work primarily with large institutional investors or investment banks, which focus on corporate clients and large trades.

In contrast, large institutional investors are typically served by institutional brokerages that provide different levels of service, and investment banks focus on underwriting and facilitating large financial transactions rather than catering to individual investors. Online trading platforms, while important, are tools that retail brokerages use to facilitate trades for individual clients rather than a primary focus of the brokerage itself.