| Full service brokerages firms provide buying and | | | | transactions. This is not true with full service |
| selling advice along with other services such as | | | | brokerages since they get their commissions from |
| market trend analysis, market news and personal | | | | the buying and selling spreads. |
| telephone services twenty four hours a day, six days | | | | Some discount brokers will charge extra for stop |
| a week. Discount brokers do not provide advice and | | | | limit, stop losses and other transactions that go |
| some of these other advanced services. They simply | | | | beyond the simple buying and selling transactions. This |
| provide a means for performing buying and selling | | | | is true also for full service brokerage firms. All firms |
| transactions, along with a platform in which to | | | | charge different amounts for these types of |
| perform these transactions. | | | | activities so it is best to find out in advance what |
| There is a distinct difference between full services | | | | these fees and charges will be so you do not have |
| brokerage firms and discount brokers beyond the | | | | any surprises when the time comes to perform one |
| services which include affordability. If you are an | | | | of these activities. |
| experienced trader and do not need the expensive | | | | Discount brokers and full service brokerage firms alike |
| advice from a full service broker then the discount | | | | have minimum opening balance account amounts. So |
| broker route would be ideal for you to perform your | | | | it is extremely important to understand what these |
| investments. If you are not an experienced trader | | | | minimum amounts are and whether there are |
| then a full service brokerage firm maybe best to help | | | | additional fees associated with your trading account |
| you with your investment decisions. | | | | such as account maintenance fees or other charges |
| Full service brokerage firms charge a commission | | | | based on amounts. Insuring your trading fees are |
| based on your investment spreads whereas a | | | | equally as important from both types of brokerages |
| discount broker charges a fee per transaction. So if | | | | because in today's market any could be in jeopardy |
| you buy stocks then with a discount broker you pay | | | | of going out of business and you want to protect |
| for that particular buy transaction no matter how | | | | your funds. |
| much you buy. The same applies to selling | | | | |