Full Service Brokers – Compare Full Service Stock Brokers

While a lot of people search around looking for the cheapest rates when choosing a broker, there is still a strong demand for the more traditional broker or full service broker. If you like a more passive investment style, or you just don’t want to learn how to use the myriad of discount broker trading platforms out there, then a full service broker who will place all your transactions for you and even often advice on what to invest in, might just be what your looking for.


When When choosing a full service broker there are services that you should look for and expect to be provided to you.

Advice

The kind of advice you can expect will be situated around buying and selling of the various instruments that they deal in. You won’t get advice on which investment sector is likely to be giving a higher return in the long term future because that can be a matter of largely guess work. You won’t get taxation and financial planning advice either.

Buying and selling advice will involve the timing factors needed to bring in maximum profits to your account based on your initial preference of market sectors. It will sometimes also include evaluations based on fundamental analysis in the market sectors that your account invests in. If your account invests in the banking sector then expect to be told which banks are performing and which are not. Don’t expect to be told to switch from the banking sector into the mining sector by a full service broker.

So you choose the investment and the full service broker will maximise the profits.

Research

All full service brokers do research on behalf of their clients. Their research is based on find the best case scenarios for their clients accounts. This research can be presented in the form of weekly or monthly emails or newsletters. The research will be broadly based opinions that have come about due to both fundamental and technical analysis of the relevant investment sectors. Individual portfolio advice can be given based on this research. You should ask that your portfolio be evaluated and modified based on this research. Advice based on current research should given upon on a regular basis as part of the service. Make it known if you do not which to be treated as part of the crowd in that investment sector.

Access to Floats

All full service brokers should make you aware of new floats that meet your investment requirements within your portfolio. When you start out with a full service broker, make them aware that this is a requirement of yours. Many brokers get first access to stocks when they are first listed because they are the underwriters of these stocks. Brokers will underwrite these floats if they see them as viable and profitable in the longer term. Many profitable experiences may be had if you can jump the gun and get in first on these floats.

Brokers typically charge a flat fee or a percent of the value of the trade for higher amounts. Your evaluation of this fee should take into account what services the broker offers in addition to trading.

This is only three of many services a full service broker can offer.