Stock Brokers : Full Service Broker Vs Discounted Brokers
Full service brokers do provide professional help but at a higer cost while discount brokers offers somewhat limited services but with small fees.For example discount brokers can charge you between $5 and $20 for an individual online trade while in full-service you can be charged for $150 for average trade.
Along with those charges you might also be asked to pay for annual account maintenace charges which might be an addition of +$ 150 per year.
With the growing popularity of online trading, online brokers have received recognition worldwide. Any broker can vary in their services and features offered.You should research properly before fixing a broker.There are certain criteria through which one can decide which broker to opt for.
Rates and commissions : Brokers have differeny fees structure which they charge for completing any deal via your online account. You must have a fair and open discussion and also compare different brokers before you make the right choice for yourself.
The answer is ‘yes’ that happens…more often than you think. It is also true of mutual funds that are recommended to you.
YES Thats One of the ways they make a living…….
That depends.
A broker makes the same commission when buying or selling any particular stock, so he does not have a preferrence that is swayed by commission. That being said, the more you trade, the more he makes, so this might influence his relationship with you.
a financial planner, is paid by selling you stuff, by either a fee for time, or a sales commission, and a kickback from the product sold and trailing fees on the investment in the future.
their optimal return is based on you staying with their products long term, and adding more capital over time.
Im a stock broker and it is against our firms policy to offer incentives for offering one particular stock over another. This is not true of mutual funds. The fund company itself sets the sales commission. I dont sell funds however in the traditional sense. My practice focuses almost entirely on separately managed accounts and managed mutual fund portfolios. I work for a major wall street wirehouse….and the answer is NO to the question of whether General Mills is better for me to sell than Hershey because the commission is higher. Also, all these planner guys are here to sell you insurance and annuities…..so be careful. Look for an asset manager with a track record and credentials.