What is Wire House?

Wire House is a large financial institution that has more branches that are able to communicate electronically. The "wire" in the wire house concerns the electronic communication system that combines various locations. Originally wire houses communicated by phone, but now communicate through computer systems. Wire houses use this electronic communication system to share research, prices and other important financial information about their customers and accounts.

Banks are wire houses because they connect their branches electronically. Wire House's customer has access to information about their account at any branch of the bank because the branches are connected electronically and can share information. This term is now commonly used to indicate large mediation houses such as Smith Barney, Merrill Lynch and others. They are considered wired houses because their branches are all interconnected electronically. Electronic Communication System is used to communicate trades of the navigAznice and to access your account information.

The broker, which is employed in the field of wire mediation, is referred to as a wire broker to distinguish him from an independent broker. An independent broker can trade in products of a number of different brokerage companies, while Wire House brokers usually only trade the wire products that employs them. Traditionally, Wire House brokers were perceived as a top layer of financial advisors. However, the economic decline of 2008 - 2009 was stabbed by the image of large wire houses and brokers working there.

Since the arrival of the Internet, the advantage that large banks and brokerage houses once enjoyed has evaporated. Individual investors now have access to current financial information and prices and carry out shops through online broker discounts. Since large brokerage companies charge relatively significant fees for managing the investor's account or trading, onlineDiscount brokers have become more attractive, especially for small investors.

Due to the changing economic climate due to the recession of 2008 - 2009, the future of large wire houses is unclear. Customers and brokers have changed their loyalty from wire houses to independent brokers and took their money with them. It remains to be found whether large wire houses can adapt to this trend in the economy and maintain their dominant position in the sphere of investment and wealth management.