Brokerage Stocks: Trouble on the Horizon?

We all know that the brokers play an integral part in both trading and investing. Everyone who trades needs a brokerage account, and some people have multiple accounts with various brokers. These brokers make their money based upon the commissions that they receive, generally on a per trade basis. This has been a profitable model for these brokers, as the market conditions of years past have been bullish, which encourages people to put their money to work in the financial markets. The more money people put to work in the markets, the more commissions the brokers can earn.

But with thoughts of a recession looming, a recent rash of people pulling money out of play in the markets should mean that the brokers' main source of revenue, their commissions, will fall drastically.