There are many choices for you when it comes to wealth accumulation. Whether your monetary goal is to save for retirement, college or a new house, you can utilize stock brokerage firms to help save toward these goals.
So how do you know whether to use full-service brokerage firms, investment advisers, discount brokers, or online brokers? This article will help you:
1. Distinguish between a broker dealer and an investment adviser in order to determine which is right for you
2. Learn about some of the leading online and discount brokerage dealers
3. Learn what some of the leading full-service brokerage houses have to offer
Determine whether your needs would best be served by a brokerage house or an investment adviserWhen a broker dealer makes recommendations for a client, he generally charges a transaction fee for the security that is bought or sold and is concerned that the investment is suitable for the client. When an investment adviser provides advice, he generally doesn't charge a fee on a transaction basis, but often as a percentage of assets, and the investment adviser has a fiduciary responsibility to the client. What does that mean and which one is right for you?
Learn the advantages of online and discount brokerage housesIf you are a self-service kind of person, enjoy researching companies and don't want to pay high transaction fees, an online or discount investment brokerage may be your answer.
Learn the advantages of full-service brokerage housesIf you know you need help with your investment decisions, the full-service brokerage service company may be right you. Also, if you still have not decided whether a broker dealer or investment adviser is right for you, the good news is that many full-service brokerage companies also offer investment adviser services.
- If you are concerned about tax consequences of trading with a broker dealer, you should make sure the investment brokerage firm you choose tracks cost basis for your trades.