Full Service Brokers are traditional brokers who provide a variety of services in investment options and also advisory on the best investment possible. Their services include tax tips, retirement planning, Investment in Mutual Funds, Fixed Deposits, IPO, etc,.. Full service brokers are experts in investments and have up to date information about the latest trends in share market, tax and so on. Research and advice is their specialty in the services.
Full service brokers are better than the rest in services and the reason for their full fledged service is because they have their own research team. This research team helps the customers in their financial planning. However, full service stock brokers are costlier than the other types of stock brokers owing to the services provided by them. Full service brokers provide extra services when compared to discount brokers. Sometimes the whole portfolio is managed by the full service brokers.
They publish newsletters regularly where they provide advisory and tax tips for their customers. Full service brokers don’t provide their services online instead they have their own office. The clients visit the office for services and each are appointed a personal stock broker for financial advisory. They always maintain a strong long term relationship with their customers.
They provide special products such as debt instruments, preferred stocks, alternate investment opportunities, etc,.. Additional products of full service stock brokers are mutual funds, insurance, loan services and ETFs(Exchange Trade Funds). The full service stock brokerage firm has a well established research department that analyzes to give a detailed report to the customers. The firm has a banking division as well. These stand as a main reason why many investors go for full service stock brokers.
Investors prefer full service stock brokers to discount stock brokers for the reason that they get a personal broker who is skilled enough to handle his investment portfolio. Investors with large asset may need help in financial management. Such investors usually go for full service stock brokers. Also those who are not much experienced or much knowledgeable in investments go for expert advice from full service stock brokers. It is a good way to start safe. However cost changes from firm to firm.
Some full service stock brokers provide online access and trading platforms. These platforms have fundamental research and analysis tools. These are for investors who tend to have work individually.
Full service stock brokers are a comfortable way of managing your investment because being experts they can help you in avoiding mistakes and walk you through a safe a secured path of investment. This is why full service stock brokers are costly. Their knowledge in investments helps us greatly to escape heavy losses and to make critical decisions. This is not just safe but also a profitable way. But anyhow you need to be ready to invest more in brokerage firm as it is going to help you a lot in a long term run.
Finally, you just need to have a few things in mind when you choose a stock broker. Full service stock brokers are pretty much costlier than the other type of stock brokers. So if you are going to choose full service stock brokers make sure you are able to afford to it. Secondly, if you are going for a full service stock broker reassure yourself with what you really need from them and analyze if the cost you pay is worth the services you need. It is not about what service they provide, it is about which among them you really need. Thirdly, be careful in choosing the right brokerage firm. Since this goes in for a big investment there shouldn’t be any mistakes.