We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is a Wire House?

Tricia Christensen
By
Updated: May 16, 2024
Views: 13,052
Share

When you have a bank account, you can typically use any branch of your bank to make deposits, withdrawals or otherwise. The reason you’re able to do this is because all of the branches belonging to your bank, through computer communication, are essentially “wired” together and have access to the same information though high-speed communication means. This can also be called a wire house.

In the example above, wire house doesn’t refer to the branch itself, but to the company (house), which organizes its many locations by providing them with the same level of access to information. Those old enough to remember the pre-computer era of banking realize the term is still a relatively new one. Prior to the ability to communicate via computer from bank to bank, no company could be called a wire house. If you wanted instant access to your funds, you’d visit the bank that was your home branch, since it had direct information about your bank balance.

When computers were first developed, they were massive machines not intended for home use. High-speed connections between different parts of a company or different branches of the same bank were common in businesses long before they were affordable for use at home. Only the biggest companies could afford the expense of being able to provide communication from office to office, and frequently these companies were brokerage firms. It thus became common to refer to a large brokerage firm as a wire house, as they were wired together so that the same information was available to every aspect of the firm.

The name stuck, even though we now see examples of “wired” companies in a variety of settings and it’s as common as air. You can visit or call a stockbroker at any location and receive current and the latest information on prices of stocks and drops in the market. You can even direct a broker to purchase or sell stock, which can often be done immediately, and you’re able to get this information online too.

The flow of information isn’t just between branches of a typical wire house company, but also comes from primary sources, like the different stock markets. High-speed communication also allows different companies to contact each other, such as two banks being in communication regarding withdrawals, written checks, or a bank being in communication with a grocery store when you use your ATM to shop. Any company that has branches where each branch is able to quickly retrieve information from a common source can technically be called a wire house, though the term has been most applied to brokerage firms.

Share
SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Tricia Christensen
By Tricia Christensen
With a Literature degree from Sonoma State University and years of experience as a SmartCapitalMind contributor, Tricia Christensen is based in Northern California and brings a wealth of knowledge and passion to her writing. Her wide-ranging interests include reading, writing, medicine, art, film, history, politics, ethics, and religion, all of which she incorporates into her informative articles. Tricia is currently working on her first novel.
Discussion Comments
Tricia Christensen
Tricia Christensen
With a Literature degree from Sonoma State University and years of experience as a SmartCapitalMind contributor, Tricia...
Learn more
Share
https://www.smartcapitalmind.com/what-is-a-wire-house.htm
Copy this link
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.