What is a characteristic of deep discount brokerage firms?

Deep discount brokerage firms are known for providing a lower-cost option for investors who are looking to execute trades without the added costs associated with full-service brokerage firms. These firms typically offer minimal advisory services and focus primarily on executing trades for clients at reduced commission rates compared to traditional brokerages.

The correct choice highlights that these firms often provide discounts on commissions for frequent trading, which is a key characteristic. This appeals to active traders who engage in multiple transactions, allowing them to save on costs, thus making it an attractive option for those who prefer to manage their investments independently without the need for extensive support or guidance. The business model of deep discount brokers is specifically designed to cater to cost-sensitive investors, prioritizing low transaction costs over other services.

Other options reflect characteristics that are typically associated with full-service brokerage firms rather than deep discount brokers. High commissions would deter frequent trading, full-service advisory support is something deep discount brokers usually lack, and guaranteed minimum returns are not a characteristic of their offerings, as investing inherently involves risks without assured returns.