One of the first decisions an investor has to make at the onset of investing is whether to use a discount or full-service stockbroker.

Discount brokers offer fewer services than full-service brokers and their fees are generally lowest. While discount brokers charge investors for each trade or each time they buy or sell a stock, mutual fund or bond, full-service brokers generally adhere to a fee structure that is based on the value of an investor's account.

Discount stockbrokers offer the bare bones of financial services. For a fee, they perform the buy and sell orders that investors place online.

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The field is highly competitive, and discount brokers often lower their fees in hopes of capitalizing on the volume of trades while capturing market share from their rivals. Full-service brokers offer clients a fee-based service rather than charging for each individual market transaction. This approach is customary for stockbrokers who provide clients with access to research and educational sessions in addition to personal investment advice and performing transactions.

Full-service brokers charge clients a yearly fee of between 1 percent and 1. A financial adviser differs from a stockbroker. An adviser often becomes personally involved with a client's financial situation and provides advice on many financial matters, from which mutual funds to buy to managing an estate.

Traditional commission-based stockbrokers are increasingly becoming fee-based financial advisers, according to a "Wall Street Journal" article. The article points out that advisers charge higher fees for managing equities versus bonds, which could motivate advisers to invest more heavily in stocks over bonds. If an investor does not read the fine print on his account documents, he may wind up paying hidden fees.

If an investor fails to make a trade during a specific period, she could be hit with an inactivity fee. These fees could be waived if the investor maintains an account balance above what is the timeframe for binary options certain threshold.

Geri Terzo is a business writer with more than 15 years of experience on Wall Street. Throughout stock brokerage fees usa career, she has contributed to the two major cable business networks in segment production and chief-booking capacities and has reported for several major trade publications including "IDD Magazine," "Infrastructure Investor" and MandateWire of the "Financial Times.

Terzo is a graduate of Campbell University, where she earned a Stock brokerage fees usa of Arts in mass communication. Each week, Zack's e-newsletter will address topics such as retirement, savings, loans, boss best us binary options brokers, tax and investment strategies, and more.

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These returns cover a period from and were examined and attested by Baker Tilly, an independent accounting firm. Visit performance for information about the performance numbers displayed above. Skip to main content. More Articles Do You Pay a Stock Trade Fee to Buy and Sell? Do Brokers Charge to Sell Stock? How Much Does It Cost to Buy Stocks? How to Transfer Control of a Stock From a Full Investment Firm Online Investing Vs.

Discount Brokers Discount stockbrokers offer the bare bones of financial services. Full-Service Brokers Full-service brokers offer clients a fee-based service rather than charging for each individual market transaction. Financial Advisers A financial adviser differs from a stockbroker. Ghana interbank foreign exchange rates Fees If an investor does not read the fine print on his account documents, he may wind up paying hidden fees.

Full-Service Brokers The Wall Street Journal: Business Model Darwinism USA Today: Beware of Hidden Fees Online Brokerages Charge Smart Money: Best and Worst Brokers of Securities and Exchange Commission: Protect Your Money -- Check Out Brokers and Investment Advisers Bloomberg Business Week: Fee-Based Accounts -- A Poor Fit for Investors? About the Author Geri Terzo is a business writer with more than 15 years of experience on Wall Street.

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