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Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including Kacer Insurance and Financial Services.
What is a 'Brokerage Company'?
A brokerage company’s main duty is to be a middleman that connects buyers and sellers to facilitate a transaction. Brokerage companies receive compensation by means of commission once the transaction has successfully completed. For example, when a trade order for a stock is executed, an investor pays a transaction fee for the brokerage company's efforts to complete the trade.
TYPES OF BROKERAGES
Full-service brokerages are also known as traditional brokerages. These companies offer estate planning services, tax advice, and consultations. These companies also offer up-to-date stock prices, quotes, and research on economic conditions and market analysis.
A discount brokerage typically charges less than a traditional brokerage. Several companies also offer advice at a lower cost. However, the depth of the advice depends on the size of an investor’s account. These types of companies charge a lower commission by having their clients conduct trades via computerized trading systems.
Online brokerages only offer a website for investors to conduct transactions on their own. Clients can communicate by email or phone to conduct trades or ask questions. These companies offer their services at a discounted rate because they don't offer investment advice.
Captive brokerages are affiliated with a specific mutual fund company. Captive brokers are biased and are persuaded to recommend and sell mutual funds that the mutual company owns. As a result, brokers may sell client’s products that are not in their best interest.
Independent brokerages are not affiliated with any mutual fund company. Typically, these brokers can recommend and sell client products.
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