Ask Colin

I see no reason to use a full service broker once a framework is established for trading, except for the execution of short sales. Can you see other trading reasons to employ a full service broker? For instance do you think their yearly forecasts are useful?

The last thing I would use a broker for is forecasts. No one can forecast the future. A day in advance is difficult; a year in advance is incredibly difficult. I see forecasts as a total waste of time and effort and positively dangerous to your financial health because of the psychological risks.

A full service broker may provide a trader with other useful services however. It depends on what you want and what you are prepared to pay for. Some examples are portfolio management, access to floats, advice and execution of large or difficult orders, market intelligence, research on companies, financial planning. As I say, what are you looking for?

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