Which of the following is a characteristic of online brokerages?

Online brokerages are characterized primarily by their virtual operations and the ability to charge reduced commissions compared to traditional brokerages. This cost efficiency is largely enabled by their reliance on technology and the internet to facilitate transactions, which reduces overhead costs associated with physical office spaces and in-person services.

Additionally, online brokerages typically provide a platform for investors to trade securities directly, allowing for a more independent trading experience. They appeal especially to self-directed investors who prefer to manage their portfolios without the need for personalized investment advice, which is commonly found in traditional brokerage firms.

In contrast to other characteristics that are mentioned, the statement about online brokerages not being based in physical offices and instead operating virtually is key to understanding their business model. This virtual nature contributes to lower fees and a focus on technological solutions for trading and investment management.