Basics Beginner: Broker Services

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1.
You will make more money using a full-service broker because of their knowledge and expertise than you would by going it alone.
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False. While brokers may have more financial education and expertise, they are not clairvoyant. You have as good a chance at making money investing by doing your own homework carefully.
2.
A brokerage may be able to offer checking and credit cards.
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True. Brokerage firms can offer asset management accounts that combine broker services with banking services such as checking and credit cards.
3.
Brokers are allowed to give limited tax advice.
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True. Brokers can advise you on investments that will limit your exposure to taxes.
4.
A full-service brokers commission is based on the total value of holdings in the customers account.
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False. Commissions are fees levied on each transaction the broker processes for the customer.
5.
All of the following are good reasons to use a full-service broker, except _______.
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The guarantee of higher returns. This is not something a full-service broker can offer (though he or she can offer the other options).