Define full service stockbroker

Believe it or not, there are some of you that might be better suited for these types of full service brokerage firms with their mahogany paneled walls, well-heeled brokers, and fine cut crystal glasses despite the substantial costs.

Pros and Cons of Using Full-Service Stock Brokers - dummies

With a discount broker, you are simply paying to get your trades executed. For those with experience, the ability to analyze financial statements, and an understanding of businesses, this is an ideal arrangement.

You just need someone to place the trades you order. Although services and products are not fully uniform and costs will vary from firm to firm, typically you should want some or all of the following from your full service broker:.

Perhaps the biggest benefit for someone without experience is the opportunity to have a reputable firm guide you through the process. Although it is highly probable that the fees will cut into your returns, you may be better off in the long run because a good broker can hold your hand through turbulent markets, helping you to avoid mistakes such as selling at market bottoms or buying during speculative bubbles.

Just last week, I was chatting with a financial representative from a major U. As long as you have a reputable firm with a proven history of good, long-term results, stay the course. There is one alternative to full service brokers that is particularly attractive if you don't have a lot of capital to invest or you are primarily interested in buying and holding stocks for the long term ten years or more.

You aren't likely to hear about them because there really isn't a motivation as they don't produce profits for any brokerage house.

It's called a direct stock purchase plan or a dividend reinvestment plan.

Every quarter, you'll likely receive a statement detailing the reinvested dividends, purchases, sales, stock splits, or any other information that resulted in changes to your account. Put together enough of these plans, and you have a simple, cheap way to build equity in some of the biggest names in the world - Coca-Cola, General Electric, Bank of America, Home Depot , Wal-Mart, etc.

Search the site GO. Investing for Beginners Basics Stocks Bonds ETFs Mutual Funds Retirement Real Estate Balance Sheets Income Statements Portfolio Management Personal Finance Value Investing Economics.

CHOOSING A STOCKBROKER - FULL SERVICE VS. DISCOUNT - efulejeqih.web.fc2.com

Updated April 28, Get Daily Money Tips to Your Inbox Email Address Sign Up. There was an error. Please enter a valid email address.

Personal Finance Money Hacks Your Career Small Business Investing About Us Advertise Terms of Use Privacy Policy Careers Contact.