
A full service broker offers investment advice and portfolio management services in addition to transaction execution that discount brokers offer. Because you are receiving advice in addition to trade execution, you pay more for the trades. That is, the broker includes the cost of their research in the trades that you do.
A full service broker would help you elucidate your own investment goals, like saving for college, a house, or retirement. They would help you determine what level of risk is appropriate given the goals that you have set. They would help you establish an asset allocation appropriate to the level of risk and return you need to reach your goals. Finally, they would recommend securities (stocks, bonds, real estate, alternative assets) to give you a fully diversified portfolio.
As an alternative to paying higher fees for your trades, many brokers will allow be happy to charge you a percentage of your assets each year with unlimited trading included in the fee. This is great for frequent traders where transaction fees become a significant drag on performance. If you trade less frequently, it would be less attractive.
There are likely to be several full service brokers in all but the smallest of towns. Talk to your attorney, CPA, or other professionals for recommendations of brokers they trust and can recommend.







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