A full-service broker offers a wider range of features, tools, and other services than a discount broker.
At a full service broker, an investor usually works with an individual broker who knows your account, your investing style, goals, and your risk tolerance. He/she assists you in selecting investments. That personal attention, the need for highly trained personnel, and for office space in high rent locations makes a full service more costly. Some investors find the personal attention beneficial, but the investor must be prepared to pay for this service with higher commissions and with investments that pay loads or other fees.
Discount brokers are less expensive in part by using the internet or 800 telephone lines for most contacts with the customer. Service is more impersonal, and you are more on your own to make investment choices. In return, the discount broker passes on the savings with a lower fee structure.
Related Fool Articles
Related Community Blogs
Recent Mentions on Fool.com
- A Serial Entrepreneur's Take On Tech, 'Power to the People' and Start-Up Valuations
- 1 Money Mistake I Should Have Never Made
- Interactive Brokers Reports Solid 2014 Growth, but Fears Remain
- Full-Service vs. Discount Brokers
- Why Zillow Inc. Just Doubled Down on Real Estate Pros
- Why Are Closing Costs SUCH a Big Deal?