Discount Broker

Tia91

Can anyone explain what a discount broker actually does as I have read about them on various threads now. It appears that some are better than others - how do you determine this? As I have previously posted I am looking for the next stage in investing after doing all the normal savings options. I guess that a discont broker will be able to give me a good deal on some financial products - is that the case? Can anyone recommend websites to look at for good examples?

Thanks :undecided

dunstonh

Its an IFA that offers discounts. All IFAs have the facility. Its a case of whether they wish to or not.

Some will offer discounts with advice. However, the biggest discounts you can get come with the execution only companies as they have none of the liability and a fraction of the paperwork to deal with. However, its not always the cheapest or best route.

cheerfulcat

dunstonh wrote:

However, the biggest discounts you can get come with the execution only companies

Of course, if they are execution-only ( that is, they don't give advice ) they are by definition not IFAs, just brokers.

Can anyone explain what a discount broker actually does as I have read about them on various threads now. It appears that some are better than others - how do you determine this? As I have previously posted I am looking for the next stage in investing after doing all the normal savings options. I guess that a discont broker will be able to give me a good deal on some financial products - is that the case? Can anyone recommend websites to look at for good examples?

A discount broker is a stockbroker ( or an IFA firm with a brokerage arm ) which offers to rebate ( or doesn't charge ) all or part of the initial commission and sometimes part of the ongoing commission on financial products. The question of who is better is highly subjective and depends in part on your personal circumstances and requirements; there's quite a variation amongst providers as to what is available, levels of service and so on.

There is a board on the Motley Fool where you can see what other people think of various brokers - that might offer a few pointers. FWIW, I like Squaregain ( not generally regarded as a discount broker but they waive the initial commission on most funds ) and Hargreaves Lansdown.

You can read more here and there's an interesting article here, as well.