A big decision that many investors have to make is whether they want to work with a discount broker or full-service broker. There are plenty of differences between these two types of investment managers. Investors should do their homework and gather all the facts before choosing one or the other. If you need to learn more about discount brokerage firms or full-service brokerage firms, this Mullooly Asset Management video is for you!
For a detailed analysis of what to expect from a discount broker or full-service broker make sure to watch this video. The general differences that exist between these two investment managers have to do with fees and commissions. If you choose to work with a full-service brokerage firm there will be a lot of fees. Brokers at these big firms make as much as 2% when making trades inside of brokerage accounts. They also charge fees for many service based tasks like having an IRA or getting you a check for your gains. In contrast, discount brokers will cost you much less money. A trade typically costs about $10 when placed through most discount brokers. Things like having an IRA, getting a check, or getting a checkbook tend to be free through most discount brokerage firms.
Make sure to watch this week’s Mullooly Asset Management video to learn more about whether you should invest with a discount broker or full-service broker.
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