A full service broker is a brokerage firm that, unlike discount brokers, offers financial and investment advice. Like discount brokers, they allow their clients to buy and sell stocks, bonds and other financial products. Clients at full service brokers, however, never deal with these transactions directly or personally. All trades must go through an investment advisor who is employed by the broker. These investment advisors are real-live, flesh and bone people who place the buy and sell orders and give investment advice to clients.
Full service brokers also hire professional portfolio managers who build different portfolio models and sell them to clients through investment advisors. Of course, none of these services are given away, so clients at full services brokers pay much higher fees than at discount brokers.
Discount brokers are the intermediaries through whom you can buy and sell stocks, bonds, options, parts of mutual funds or other securities (and basically anything else that is traded on the stock market and/or has to do with investing).
A portfolio manager is responsible for investing their clients’ money. Also known as a wealth manager, they work for high net worth individuals and institutional clients such as mutual funds or insurance companies. Read more