Syndicate
Comparison between a discount agency and a full service agency
The criterion to choose between working with a discount agency or a full service agency is simple. How much help does one need to make an investment decision? Not so much, because, one trusts in ones research and analysis. Well, in that case, the best choice would be a discount agency. But, if one needs much help, because one needs the personal advise of a representative, then, the best choice would be to go to a full service agency.
An economic reasoning may clear even more the selection. If thinking in saving a certain amount in commission, go to a discount agency to buy securities, the most probable will be that the profit of ones investment will not be as large as in the case of giving the buying order to a full service agency.
Ones relation with the account executive
If one opts for a full service agency, the next step should be to establish contact with an ideal account executive. (In this case a discount agency will just limit themselves to assign one, one). To end an appropriate account executive that is ideal for ones personal and financial needs is a question that requires between client and account executive must satisfy both parts.
For example: Let’s suppose that one wants to periodically buy securities worth thousands of dollars and to keep them during a long period of time –five or more years. Let’s also suppose that ones tolerance towards risks is low, that is that one prefers investments with low risks. With this in mind, if one opens an account with an executive that has preference for more risky investments and whose clients buy and sell very often, there will be a possibility that ones account will not receive the attention that it deserves.
To avoid this type of situation, the best is to talk frankly about ones investment plans and financial objectives to the account executive, and also one should research the kind of account that one is used to work with.