In: Finance
In the context of acquiring financial assets, which of the following is a result of competition among brokerage firms?
options:
Many full-service firms have lowered their commissions, while many discount brokers have begun offering investment advice and other services. |
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Most full-service firms do not charge fees for the services they provide, while most discount brokerage firms charge commissions based on the dollar value of the orders their clients place. |
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The commissions and fees charged by discount brokers are usually significantly higher, while full-service brokers charge flat fees of a few dollars per trade for simple transactions. |
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Discount brokers provide a wide range of services—such as research to identify good investment opportunities, financial planning, and tax advice, while full-service brokers restrict themselves to buying and selling securities for their clients. |
Due to increase in competition among brokerage firms i think the following option will be reulted.
Many full-service firms have lowered their commisions, while many discount brokers have begun offering investment advice and other services.
Because full-service brokerage charges more than discount brokers and the discount brokers offer less services compared to their competitors.