When you want to buy and sell stocks, you might go to an online brokerage like TD Ameritrade and pay low trading fees. Or you can get on the phone and call people who will make trades on stocks, mutual funds, and bonds for you. And you’ll pay much higher fees (sometimes hidden ones) in the process.
Unless, of course, the person you’re trying to call is out on the golf course.
These higher cost traders operate in commission houses. They don’t just buy and sell stocks. They also can take care of settlement, or deal with a client’s margin accounts. The fees associated with commission houses are a major reason investors should learn to trade for themselves.
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Finance: What is a Full-Service Broker?3 Views
Finance a la shmoop what is a full-service broker? full-service
"everything" close relative of the bulge bracket remember those guys want
to trade stocks here at this full service brokerage well you got it [Clipboard appears with checklist]
how about trading some bonds yep need investment advice hoo you bet we got rap
accounts here too does it have to be good advice well it's different gonna
retire well they'll suggest Goodyear or fire stone or Michelin if they're you
know socialist and European gonna quit working and play golf all day well then [Man playing golf]
a full service broker has advice for that as well want tax planning yep
referrals to other professionals like estate planning lawyers and that kind of
stuff got a kid heading to college in a decade all right well it's time to talk
529 savings plan got a grandparent dying soon whoo time to talk IRA distributions
and charity need Warriors tickets yeah what well they're full service they just
build they'll charge you for it but they're full full something [State Warriors basketball team playing a game]
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