Different kinds of Brokers
Usually there are two main types of brokers found in the U.S., brokers who provide full-service and the discount brokers.
The discount brokers as compared to the full-service brokers are much supportive to the customers – especially when a customer asks for study and analysis reports, tips on trading, offering expert advice, and assistance on specific trades and others.
However, in order to avail these services the customer has to give the extra amount, which shows that, the fee charge by the full-service broker is much higher than as compare to the discount brokers.
Hiring a broker with full-service may be suitable for customers who just keep their legs in the business industry and time to time need advices and need answers to the questions.
Even though, hiring a discount broker is always beneficial for many dealers. Particularly for those companies who themselves do their company’s analysis and hardly ever need telephone help at the time of trading.
As discount brokers generally don’t make their company’s own analysis and research, therefore, offer much less services as compared to brokers who offer full-service, also they charge much lower commission from their clients.
When dealing with a discount broker, customer puts all their trades in a computer application which they e-mail to the discount broker. That is why the time required for implementation of trades is shorter as compared to the trade that is done through via telephone call – that is no doubt an additional benefit.