How to Find a Stock Broker: Part 2

Full Service Brokers

A full service broker means exactly that - full service. Some of you may remember the full service that service (gas) stations use to have years ago. The word "service" isn't really associated too much with gas stations these days. Anyway, in a full service gas station you would pull up in your car, roll down your window and a nice, pleasantly dressed person would greet you with a smile. He/she would then ask you what grade of gasoline you would like. After starting to fill your tank, he would proceed to check your tire's air pressure, check the oil and fluid levels under your hood, wash your windows and ask if there is anything else you required. Full Service.

This is the same kind of atmosphere that full service agents are creating for their clients, something expected and a step above the norm in this world where norm is expected. In their competitive efforts to be top dog on the block, full service brokerages have provided an environment of services that would make any client lightheaded with delight. These firms have products and services such as stocks, bonds, the brokerage's own mutual funds, tax information and advice, options, futures, money market accounts, insurance, checking and savings accounts and most of all the always sought after advice and research which never seems to end.

This advice is delivered by squads of analysts and managers employed by these brokerages. They analyze, investigate and dissect trends, corporations, market sectors then produce investment reports to be distributed on a regular basis to their brokers and clients. Some of these analysts/managers have a heavy voice and large impact on various areas of the marketplace, as their investment reports sway, to some degree, how clients invest their dollars and where. Having the advantage and information available to their clients is the name of the game and this is where full service brokers shine. Shiny things usually come with a price and this is no exception. Higher commission costs are always adjacent with the extras of full service.