HomeFirst of all, we need to define what full service brokerage is. Full service brokerage is a type of service that almost all brokers used to offer their clients. In fact, during the earliest periods of stock trading, this was the only kind of service available. Aside from the actual act of trading, this service includes everything from account handling, estate planning, making future investment plans, market research, retirement planning, tax tips, and increasing the scope of one's financial portfolio' among many things. In some cases, accounting, bookkeeping and tax filing were even part of the deal as well.
These days, many online articles are blasting the reputation of full service brokerage, often claiming that these are expensively unnecessary. But that is not often the case. There are those who find this kind of brokering service not only vital to their financial portfolio, but convenient as well.
As such, full service brokering is more appealing to business entities (people, groups, organizations, companies) that prefer to let trained professionals handle most of the nitty-gritty when it comes to trading. Here, clients are given freedom from constantly updating themselves with the changing market trends or monitoring their finances per transaction. Clients also do not have to look for possible profitable markets (unless they are predisposed to) because the brokers will probably have something worked out already.
For business entities that prefer to let their army of brokers work out their best interests, all they have to do is look at monthly or even yearly reports of their finances. The clients only ever step in if they feel that their presence can dramatically change the flow of their finances, either for better or for worse. This kind of brokering is also extremely beneficial to business entities who are dabbling in all or almost all the trading markets, all at the same time. Forex, options, futures contract, stock trading can be handled in a span of a day.
Naturally, with all the required work to be done for such a service, the rates and the commissions are extremely expensive. And that still does not include miscellaneous expenses like being billed hours for market research that the clients may have requested. However, in order to avail of this kind of service, the business entities also need a rather hefty amount of money and a considerable volume of stocks to invest in the business deals to begin with.
Additionally, clients these days also hire their own barrage of independently hired professionals from: accountants, to bookkeepers, to tax lawyers, to financial lawyers and a whole gamut of people and smaller companies to monitor their cash flow. This is a safety net to ensure that their financial investments are actually being kept safe by the actual brokerage company they hired. Needless to say, not everyone can afford such full service brokering ' and not everyone wants to.
For casual traders who would rather not be spending over a million dollars just to trade in the foreign currencies once in a while, full service brokering is indeed unnecessary. There is now discount brokering service available, which is rather limited but still serviceable to the needs of most casual traders.
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