Full-Service Stock Broker

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When you are making financial investments, especially in the stock market, you always need the support of a stockbroker, either a Full-Service Broker or a Discount Broker.

Choosing the right type of broker according to one’s requirement plays a vital role in the overall financial success of an investor.

In this article, we have discussed all that you need to know about The Full-Service Broker.

What Is Meant By A Full-Service Broker
A licensed financial stockbroker or a firm that not only facilitates buying and selling of the stock but also provides its customers a variety of services, for instance, investment advice, research reports, portfolio management service, wealth management service, retirement planning and much more.

Off course the investors have to pay commission to the full-service broker, which is quite high as compared to the discount broker. However, their expertise and high experience in this area can be considered beneficial to their clients. Here is a list of the best full-service stock brokers in India

Top 10 Full-Service Stockbrokers in India
The full-service brokers also provide a large number of investment options to the investors like a mutual fund, FPO, IPO, loans products, debt instruments, and insurances.

It is very important to know whether you require a full-service broker or not, hence we have prepared the below list for people looking to invest with full-service brokers.

Full-Service Broker Is Suitable For
  • Customers who require guidance in the form of a relationship manager, appointed by the full-service broker who will guide the new investor at every step of their financial journey.
  • Traders who trade in higher volume and need a higher margin as the personal relationship with the broker is needed in such kind of services.
  • Those who require a call & trade service or feels the need of visiting the branch /office of the broker.
  • Full-service brokers offer an extensive range of financial services like Call n Trade facility, margin trading, research reports, trading platforms with technical indicators. Thus, it is suitable for investors who want to invest in a variety of financial products and looking for better service.
Advantages Of Full-Service Broker
  • They offer customized support and interaction with regards to investments.
  • A Relationship manager and/or financial advisors are assigned to each customer. They give recommendations regarding stocks and funds depending on the preference of the client.
  • Research departments with analysts that provide proprietary detailed reports and recommendations for clients.
  • Investment banking divisions that facilitate certain accredited investor clients to access special financial products such as IPO, Preferred stocks, senior notes, limited partnership, debt instruments.
  • Offers in-house financial products such as mutual funds, ETF, loan services and portfolio management insurance.
Disadvantages Of Full-Service Broker
There are various disadvantages of full-service Broker which are as discussed below,

  • The relationship managers that are assigned to the clients are sales and marketing personnel who are compensated based on their ability to produce revenue. So customers must ensure that the recommendation made is valid.
  • If the decision-making authority is given to the full-service broker there are possibilities of loss. Hence it is advised that the customers should always keep the decision-making authority to themselves.
  • The full-service brokers carry out churning of the stocks, which is nothing but buying and selling of stocks to generate revenue. This activity is not benefitting to the investors.
To continue reading click What is Full-service Broker here
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