Stockbrokers fall into two basic categories: full-service and discount. The type you choose really depends on what type of investor you are. In a nutshell, full-service broker are suitable for investors who need some guidance while discount broker are better for those investors who are sufficiently confident and knowledgeable about stock Investing to manage with minimal help.
Full-Service broker are just what the name indicates. They try to provide as many service as possible for investors who open accounts with them. When you open an account at a brokerage firm, a representative is assigned to your account. This representative is usually called an account executive, a registered rep, or a financial consultant by the brokerage firm. This person usually has a securities license and is knowledgeable about stocks in particular and investing in general.
What Full Service Stock Broker can do for you
Your account executive is responsible for assisting you, answering question about your account and the securities in your portfolios, and transacting your buy and sell orders, Here are some things that full-service broker can do for you:
Offer guidance and advice:
The greatest distinction between full-service brokers and discount brokers is the personal attention you receive form your account rep. You get to be on a first name basis with a full service broker, and you disclose much information about your finances and financial goals. The rep is there to make recommendations about stocks and funds that are hopefully suitable for you.
Provide access to research.
Full-service broker can give you access to their investment research department, which can give you in-dept information and analysis on a particular company. This information can be very valuable, but be aware of the pitfalls.
Help you achieve your investment objectives.
Beyond advice on specific investments, a good rep gets to know you and your investment goals and then offers advice and answers your questions about how specific investment and strategies can help you accomplish your wealth building goals.
Make investment decisions on your behalf.
Many investors don’t want to be bothered when it comes to investment decisions. Full-service brokers can actually make decisions for your account with your authorization. This service is fine , but be sure to require them to explain their choices for you.
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