Are all Stockbrokers the Same?

Everyone interested in investing in shares will need a stockbroker to help them buy and sell, since the general public are not licensed to do this. But not all stockbrokers are the same; their difference lies in what services they offer.

* Full service stockbrokers. Stockbrokers who offer what is called a full service offer a great deal of useful advice on the buying and selling of stocks, shares and other options. They not only tell you which shares are best, but which are best for you. This is because everyone has a different financial goal and a different level of risk they are comfortable with. So full service stockbrokers will tailor an investment plan especially for you and will do research into it and buy and sell the stocks, shares and other components for you. They will also charge you a fee commensurate with their knowledge and abilities, but you can be sure that your losses will be small – at least most of the time.

* The non-advisory stockbroker. Investors who are more confident in their ability to buy stocks and shares that will give them a good return on their investment will only need a non-advisory stockbroker. These stockbrokers will simply buy whichever shares you tell them to – and of course, sell them when you decide to sell. You could be making a big mistake and they may know it, but they will not be able to tell you so if they are in the non-advisory stockbrokers category.