What Are Brokerage Services? The Brokerage Business, Types, and Examples

Key Takeaways

• Brokerage services connect clients to markets, facilitating trades, offering advanced analytics, and supporting AI-driven trading at scale.
• In 2025, over 3,249 FINRA-registered brokerage firms operate in the US, with more than 634,000 active registered representatives.
• AI is revolutionizing broker services brokerage business platforms are now integrating real-time market analysis and smart automation.
• ETNA Trading is at the forefront, enabling modern brokerage firm services with robust, modular tech.

What Does a Brokerage Do?

Brokerage firms also known as brokerage houses serve as regulated intermediaries, executing trades, managing accounts, and offering advisory or self-directed services. They help investors access diverse asset classes, manage risks, and embrace fintech innovation like agentic AI trading that delivers personalized insights and automation

The Brokerage Houses: Definition and Business

A brokerage house, or brokerage firm, is a licensed company that enables securities trading for investors, collects commissions or platform fees, and often provides digital or human advisory services. In 2025, US broker services generated substantial market activity via over 3,249 active brokerage firms:

• Large firms (500+ reps): 530,334 representatives (81.7% of total).
• Mid-size (151–499 reps): 57,764 representatives (8.9%).
• Small (1–150 reps): 61,143 representatives (9.4%).

Modern brokerage firm services span:

• Equity, options, ETF, fixed income, and crypto trading
• Automated, AI-powered insights and compliance tools
• Education, retirement, and wealth management

Cloud platforms like ETNA Trading allow firms to automate operations, integrate compliance, and support fractional share trading at scale.

Types of Brokers (2025 FINRA Breakdown)

The US market features a diverse range of brokerage business models. Here’s a summary table using 2025 FINRA data and industry definitions:

 In 2024:

• 311,469 US representatives are broker-dealer only;
• 323,039 are dual broker-dealer/investment adviser;
• 89,223 are adviser-only.

Examples of Brokerage Firm Services

Brokerage firm services today include:

• Stock, bond, option, and ETF trading
• Prime brokerage (for institutions)
• Retirement accounts/401(k) servicing
• Automated compliance and risk monitoring
• Crypto and alternative asset access
• Lending, margin, and derivatives

AI-driven services are booming real-time analytics and agentic execution are now common on leading platforms.

US FINRA Market Snapshot: 2025

AI and Digital Trends in Brokerage Services

The brokerage business is rapidly transforming with the spread of artificial intelligence and automation. AI trading and agentic AI systems now deliver:

• Real-time data analysis from thousands of markets at once
• Automated trade execution based on market conditions, sentiment, and historical patterns
• Dynamic risk management and compliance alerts
• Enhanced investor experience with personalized insights and lower operational costs

For example, next-gen platforms like ETNA Trading enable brokerages to integrate AI-powered modules that scan order books, monitor news, detect market anomalies, and automate compliance seamlessly.

Agentic AI assistants can interact with traders, explain decision logic, and help firms mitigate fatigue, overtrading, and regulatory risk ensuring a competitive edge.

Is It Worth It to Use a Brokerage Service?

Brokerage firm services are vital for both professional and everyday investors, supporting everything from simple trades to sophisticated algorithmic strategies. The rise of AI, particularly in 2025, empowers ordinary traders with tools once reserved for high-frequency desks, improving consistency, adaptability, and transparency in investment outcomes.

ETNA Trading: Powering Modern Broker Services

ETNA Trading delivers turnkey digital brokerage solutions, enabling firms to launch, scale, and automate trading businesses across all asset classes. From self-directed online brokerages and robo-advisors to institutional trading desks, ETNA integrates compliance, back-office, payments, and advanced trading modules including AI-powered features to help firms grow and future-proof their broker services offering.