ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A discount broker is a stockbroker who carries out buy and sell orders at reduced commission rates compared to a full-service broker. However, a discount broker does not provide investment advice or perform analysis on a client’s behalf, unlike a full-service broker.

Detailed explanation-2: -While a discount brokerage firm will provide you with all the trading tools you require in exchange for a minimal cost, full service brokerage firms will offer you investing guidance in exchange for a higher fee. The true difference between discount broker and full service broker then is your needs.

Detailed explanation-3: -Despite their name, discount brokers tend to have many favorable traits such as low commissions and trading fees, and easy-to-use online trading platforms. Many discount brokers also have educational tools and resources available to help guide your investing, but there’s typically not an advisor placing your orders.

Detailed explanation-4: -A full-service broker is a licensed financial broker-dealer firm that provides a large variety of services to its clients, including research and advice, retirement planning, tax tips, and much more.