Types of Investment Brokers
The type of investment broker you choose depends on your desired level of engagement with your investment strategies. Full-service brokers are helpful if you don't have the time for researching and picking your own investments. Use an online broker if you understand the fundamentals of investing and you want to manage your own portfolio.
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Types
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Full-service brokers recommend securities, such as stocks or bonds, to buy or sell. They provide one-on-one advice to you. Online brokers expect you to select your own securities to buy and sell. Some online brokers can recommend securities, but it will cost you extra.
Services
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Full-service brokers have research departments that research securities and create reports. Full-service brokers also provide retirement planning and tax advice. Online brokers provide online research, market news, charts, trading platforms and portfolio management.
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Costs
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Full-service brokers charge the highest commissions. They can charge $150 for an average trade, according to Motley Fool. Full-service brokers can also charge an annual maintenance fee, which can be $150 or more. Online brokers are the least expensive. Their trade commissions can range from $7 to $20.
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