Investment Brokers

Investment Brokers exist under 2 kinds of service structures. The services provided are the only primary difference, but severity of charges associated with each one also change. Typically, these brokers charge commissions per trade.

Full Service Broker

The first kind of investment broker service structure is known as a “Full Service Broker”. A full service broker provides extensive service selections. These brokers execute a full range of transaction orders and provide pricing information for these trades. They additionally service short sales and margin loans. Full service brokers also orient themselves towards research services. They maintain a staff of research analysts which create earnings estimates, review fundamentals of potential investments, and make recommendations for purchases and sales. These firms may even manage accounts for you, purchasing and selling securities on your behalf.

Discount Broker

A “Discount Broker” is the second type of investment broker servicer. These brokers provide extremely limited functionality compared to full service brokers. They provide stripped down amenities which contain market interaction services only. They provide, at minimum, pricing information followed by transaction orders, short sales, and margin loans. Any other services provided are typically considered bonuses. Commissions and fees at full service brokerages are typically higher across the board than discount brokerages.