Full Service Stockbrokers
- Thread starter SkyRider
- Start date
Some institutions do require a minimum charge, and it depends on the kind of management you are receiving. If brokers don't achieve those minimums in the accounts, they usually have to cover the difference themselves.
Yup, maybe not all, but some full service brokers require
Yup, maybe not all but some full service brokers require you/me to meet certain financial criteria before they will accept you/me as a client.
A lot of full service brokers are trying to move clients to a fee based system based off the size of the account, generally 1 to 1.5%. The sell is you don't pay commissions as they would be included in the account fee along with their insights and advice.
Not the cheapest way to trade, but may be suitable to the investor who has money but no desire to manage it.
FWIW, I am NOT a full service broker
Not the cheapest way to trade, but may be suitable to the investor who has money but no desire to manage it.
FWIW, I am NOT a full service broker
No surprise. They (like us) want a stable predictable revenue stream. Commissions are so unpredictable.
Actuality that is not the primary reason brokers are moving to a fee-based system. It has more to do with the new CRM guidelines the regulators are coming out with governing client management.
If it weren't for these new directives my guess is brokers wouldn't mind keeping the status quo.
As someone who is working in this industry I would say anyone who is willing to get a little educated about investing should open a discount brokerage account and manage their investments online. Full service brokerage is a rip off and I can't see this industry lasting as more and more people are becoming internet savvy.
In some countries CRM rules have changed the industry where only wealthy investors use full service advisors. It's culled the ranks quite a bit. Is that a good thing? Depends on your point of view I guess. The trend does seem to indicate full service advising will one day be a service for the wealthy only. It will only lead to a wider wealth gap in my opinion.
Frankly I dont understand the "rip off" sentiment. Nobody forces any services on us. I can learn to change the oil in my car or pay someone to do it. I don't pay for for it and then complain it's a rip off. That's just whining. By the same token I don't blame anyone for choosing DIY. But like any service, you get what you pay for. We are all entitled to our opinion, but I've seen what happens when my dad chose to take a payout from the insurance company and fix the roof himself rather than wait for them to send a contractor who would have guaranteed the work. Now the roof is leaking again and the insurance company has washed their hands of it. I cannot think of a more fitting comparison.
What it comes down to is that if you are financially informed to generate a stable positive return, and you have the time and skill set to do your research open a discount brokerage account.
If you have the minimum asset requirement, do your research find a full service broker who actually makes money and actually does work. My advice is to seek one who is either a CFA, CFP or a CPA. That demonstrates some level of dedication.
I you don't have much money start with mutual funds. The reason I would disagree with the majority of folks about mutual funds versus ETFs is that most folks won't actually trade the ETF which is what was initially the intended use. (We use them to get direct exposure but usually turn them over). If you do some research in the 2007 period a good chunk of mutual funds outperformed their ETF counterparts.
I am a financial professional, however our product is geared towards accredited investors. So I hope the information I provided is helpful to you folks.
I hope everyone is having a great family day,
Goodguy
If you have the minimum asset requirement, do your research find a full service broker who actually makes money and actually does work. My advice is to seek one who is either a CFA, CFP or a CPA. That demonstrates some level of dedication.
I you don't have much money start with mutual funds. The reason I would disagree with the majority of folks about mutual funds versus ETFs is that most folks won't actually trade the ETF which is what was initially the intended use. (We use them to get direct exposure but usually turn them over). If you do some research in the 2007 period a good chunk of mutual funds outperformed their ETF counterparts.
I am a financial professional, however our product is geared towards accredited investors. So I hope the information I provided is helpful to you folks.
I hope everyone is having a great family day,
Goodguy
I've been using FS IAs for 20 years. Transaction-based fee arrangements are rare. I've been offered, and yes, additional fees would apply if you didn't meet minimum activity thresholds. But, I don't like them because I would assume that they're primary interest is to churn my account.
Not all IAs are created equal. One guy wanted to charge me 1.5% but proposed to put me all in mutual funds. Actually, he wanted to put me in just a few funds that would diversify my portfolio. LOL. I actually laughed in his face.
Not all IAs are created equal. One guy wanted to charge me 1.5% but proposed to put me all in mutual funds. Actually, he wanted to put me in just a few funds that would diversify my portfolio. LOL. I actually laughed in his face.
