Summary of Broker Services

All brokers buy and sell securities for their clients. The service provided by discount brokers is limited to making transactions, while full-service brokers can provide research, advice, and other financial services to their clients. Brokers are compensated for the services they provide by commissions or fees for services rendered. Dealers may also receive a "markup" on securities they sell from inventory. The level of service that is right for you depends on your expertise, the nature of your investment strategy, and how much of the research and work that go into managing an investment portfolio you want to do for yourself.

You can find a broker to provide just the right level of service you need at a reasonable cost. Just remember, you get what you pay for—and only pay for what you need.