Different Types of Brokers

In the past, private investors would typically use discretionary brokers. They have generally been for more wealthy clients. They take all the investment decisions for you, and inform you at regular intervals after the event, the actions they have carried out. Although you can set the aims and goals for your portfolio, you have little say over the day-to-day running of your account.

Advisory brokers have also been popular. These brokers will offer comment and opinion on your investment decisions, and will to some degree try to anticipate your needs. However, they cannot trade for you in any way without your permission.

Until very recently, the private investor was not offered an execution only service. Now that information on companies is freely available via the internet and other means, it is much simpler to carry out in-depth research.