Does Full Service Stockbroker is Better? What are Advantages? Services They Offered.
Excerpt: full-service stock broker offers you a wide array of services that no other broker can. Some are exclusive services that you will not get anywhere apart from such a broker. But why should you choose a full-service stockbroker? What exactly justifies their fees and commissions?
With the advent of internet, it has become easier to open a demat account online and start trading. However, with trading going online, there also arises the debate of choosing a suitable broker for your needs. Should you go for a discount broker or a full service broker? Will you save a lot of money if you go for a discount broker? Should you take your investment decisions all by yourself or will it be better if you reach out to an expert?
All these questions always plague the minds of investors, especially novice investors who are just starting out. The dilemma is real, and we understand it. If you are an enthusiast, a novice investor looking forward to make your mark in the stock market, our advice to you would be to opt for a full-service broker. For a beginner, the best decision would be to go with a full service broker simply because of the expertise and services that such a broker offers.
From personal advice, retirement planning, tax tips to access to various investment options like derivatives, insurance etc., they offer you everything. You get access to in-depth research as well. With such a wide array of services, their price tag is justified. One thing that you need to remember about full service stock brokers is that their commissions are based on how much you will be trading rather than the performance of your portfolio.
Let us go into why we really think you should opt for a full service stockbroker:
Reason #1: You’ll Get Access to In-Depth Research
A full-service stockbroker usually has a team of extremely experienced stock analysts. These stock analysts study, research and analyze the stock market to chart out trends and other in-depth information for trading. As an investor, such research is extremely valuable and handy. If you opt for a full-service broker, you will get access to such information that will help you invest in the right stock. This gives you the opportunity of getting the most out of your investments in the stock market.
Reason #2: You get Advice from Experienced Professionals
Full-service stock brokers have been in the brokerage business for a long time. They offer you a pool of experts who have years of stockbroking experience. Now, experience goes a long way in the stock market. The more experience someone gathers, the more they learn. When you want the best for yourself, you will always go seek advice from the experienced folks at such brokerages. Similarly when you want the most out of your investments, you should go for the best.
Reason #3: You Will be Able to Plan your Retirement.
Believe it or not, pushing away your retirement planning is not a wise thing to do. It is best that you start planning for your retirement as soon as you start earning. When you opt for a full-service broker, you also get retirement planning advice. The broker will chalk out investments for you, so that you can build a cushy nest-egg for your retirement. Depending on how many years you have left before you retire, your broker will choose the right investment plans for your needs.
Reason #4: You Get to Save Tax
Believe it or not, no one really likes to lose out their hard-earned money in taxes. When you start landing up with capital gains in the market, you will get taxed accordingly. But, when you opt for a full-service stock broker, your broker will devise a tax strategy for you so that you can save on the taxes. Your broker will set up your portfolio in such a fashion that the chosen investments will provide tax exemptions in the long run.
Reason #5: You get Access to All Kinds of Investment Vehicles.
A full-service stockbroker comes with its own perks. You get the option to invest in private equity and hedge funds that is inaccessible to anyone who has a discount broker.
As we mentioned earlier, full service stock brokers aren’t cheap. But it is worth it, because you pay for active management and instant in-depth advice. Open a demat account online with India’s premier full service stockbrokers, Angel Broking and get access to world-class investment advisory services.