What is the difference between a full-service and a discount brokerage firm?
A full-service firm customarily offers a wide range of investments, provides research materials and makes specific recommendations through its agents. First-time investors and those without the time or inclination to do their own research often choose this type of brokerage firm. Discount brokerage firms provide limited services while offering discounted commission rates. More experienced investors and frequent traders who make their own investment decisions might prefer to deal with a discount brokerage. While discount firms do not usually furnish advice or research, the differences between full-service and discount firms have blurred within the last few years.
