Identify a true statement about discount brokers.
A)They provide a wide range of services-such as research to identify good investment opportunities, financial planning, and tax advice.
B)They charge commissions based on the dollar value of the orders their clients place.
C)They limit their service to stocks and refrain from buying and selling bonds.
D)They charge lower commissions and fees than full-service brokers.

Question

Quizplus · Accepted Answer

Discount brokers are known for providing lower commissions and fees as compared to full-service brokers. They typically do not provide a wide range of services such as research, financial planning or tax advice, and may also limit their services to stocks only. Commissions are usually based on the dollar value of the orders clients place.

Identify a True Statement About Discount Brokers