What Kind of Commodity Broker Is Worth Full Service Commissions?
“Is he worth it?” Have you ever asked yourself this question after doing a transaction with a full service broker? If you could make a list of things he must do to earn your business, what would they be? There certainly IS a point where he is worth his salt. See if these ideas make sense for you. Another thing to consider is trade order entry errors. A full-service broker’s job is to become familiar with you and your account. The chance of putting through an order error is greatly reduced when two people are involved. For example, a common error is when short, someone will try to liquidate by selling. I’ve seen this mistake over and over. They end up with a double short position. (When short, we liquidate by buying) The bottom line is we can wipe out years of discount commission savings with one big error. It has happened to me when using a discount desk as you will read about in my articles. I have never had an error go through when trading full-service. Much depends on the skill of y
