Full Service Stock Broker

[jrc77]

Does anyone used a full service stock broker? If so, do you have any good or bad experiences to share?

Looking at using shares to have a more balanced portfolio and although online brokers are cheap and trying to decide if I think a full service broker will add enough value to a DIY approach.

Someone mentioned using one in a recent thread but I have been unable to find the reference again.

Regards,

Jason

 

[oracle]

I have used both a full service broker and internet online broking. To be honest I much prefer internet online broking. But I have my reasons.

1) I do all research about buying/selling myself. Broker is there just to execute the trades.

2) Having online access saves me from making a phone call and explaining my order to the broker and making sure it is executed as per my instructions. Putting the trade online is much faster IMHO.

3) Online brokerages are cheap. About 5 times cheaper in my experience.

If you are relying on your broker to advise you every so often about buying/selling then go for a full service broker else online is the way to go.

Hope that helps.

(PS: The reason I used full service broker in the past was because their margin interest rates were competitive, but now I have been able to find an online broker whose rate is even cheaper).

Cheers,
Oracle.

 

[Aaron_C]

Full service brokers are good in many respects because they get first pick of IPOs / capital raisings which can prove quite profitable if chosen correctly.

 

[oracle]

Full service brokers are good in many respects because they get first pick of IPOs / capital raisings which can prove quite profitable if chosen correctly.

History and logic says that investing in IPOs and cap raising is highly unlikely to be profitable. Ofcourse, there are always exceptions but in majority of instances investors have lost money.

Think about it? You are the owner of a profitable business and you are about to sell part of it. Are you going to try and sell it for a bargain or are you going to try to sell it for the highest possible price? Common sense tells me it's going to be the latter option.

Hence, when buying into IPOs you are hoping to make a gain from something which is unproven and expensive.

Cheers,
Oracle.

 

[wobbycarly]

I used a full service broker when I was writing calls and using a margin loan - but only because the online brokers didn't offer this at the time.

 

[Aaron_C]

History and logic says that investing in IPOs and cap raising is highly unlikely to be profitable. Ofcourse, there are always exceptions but in majority of instances investors have lost money.

Yes that is true but at least you have the opportunity to invest or choose to pass on it. Plus, many of the offerings available to stock brokers (and not retail) are smaller offerings where the upside is higher.

 

[Ed Barton]

Does anyone used a full service stock broker? If so, do you have any good or bad experiences to share?

Looking at using shares to have a more balanced portfolio and although online brokers are cheap and trying to decide if I think a full service broker will add enough value to a DIY approach.

Someone mentioned using one in a recent thread but I have been unable to find the reference again.

Regards,

Jason

I use a full service broker and am very happy with his advice. I doubt I could achieve the same returns by myself and it would take a lot more of my time to research.

However as others have said they're not cheap. If you only have a small portfolio and trade infrequently, then even if you don't make as much using an online broker you will probably come out ahead.

 

[Truly Exotic]

I am a bit cynical when it comes to these sort of jobs,

I am for the view that, if you were such a good broker at recommedning/researching/finding good/undervalued stocks,

why would you even be a broker, why not use this info, and make zillions

 

[Aaron_C]

I am a bit cynical when it comes to these sort of jobs,

I am for the view that, if you were such a good broker at recommedning/researching/finding good/undervalued stocks,

why would you even be a broker, why not use this info, and make zillions

That's the old 'those that do, do, those that can't, teach' adage. I think it's true but people do like the risk-free element of being a broker of skimming a brokerage for each transaction rather than putting their own money in.