What distinguishes an online brokerage from traditional brokerages?

An online brokerage is primarily characterized by its operation through internet platforms, which allows clients to manage their investments and trades online without the need for face-to-face interactions that are typical of traditional brokerages. This model provides greater convenience and often lower fees, as transactions can be executed quickly and efficiently over the internet. The emphasis on web-based trading aligns with the needs of modern investors who prefer the flexibility and accessibility of managing their portfolios from anywhere in the world.

In contrast, the other choices do not accurately reflect the distinguishing features of online brokerages. In-person interaction is a hallmark of traditional brokerages, which typically provide personalized services. The notion of offering exclusive investment research is not exclusive to online brokerages and can be found in traditional settings as well, often with additional resources due to established connections in the finance industry. Lastly, while some brokerages may focus on managing assets for pension funds, this does not define the distinction between online and traditional brokerages, as both types can serve a variety of clients and investment goals.