6. What are discount brokers?

Full-service Brokerage Firm vs. Discount Brokerage Firm

A full-service brokerage firm is one that offers more than just the ability to place orders and have them executed. A full-service firm usually offers a range of investing help, including providing advice, reviewing your portfolio, and even managing your portfolio on your behalf. You may also be able to get financial planning help for various long-term and short-term goals.

With a discount brokerage firm, most of the time you’re only going to be able to place your orders. And you won’t have anyone to talk to at the company. You simply use the online platform or the mobile app and decide how you want to proceed. Some discount brokers do offer add-on services. You may be able to pay a flat fee or hourly rate to have someone review your portfolio or help you with financial planning.

When deciding on a full-service brokerage firm vs. discount brokerage firm, carefully consider what you’re trying to accomplish, as well as your own investing style. If you’re more hands-on and you’re confident in your ability to move forward with investing, discount brokers can be a great choice. On the other hand, if you want more help and guidance or you perhaps want someone else to manage your portfolio for you, it can make more sense to choose a full-service firm.

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