Full service brokers provide a variety of services such as investment advice, stock research and financial planning. Because their firms underwrite initial public offerings, they may provide better access to new stock issues than discount brokers, although hot IPOs are usually reserved for bigger customers. They are more likely to offer discretionary accounts in which the client gives the broker permission to trade securities without the client’s prior approval.

Full-service firms often charge $100 or more per trade, compared to $40 or less for discount brokers. Instead of charging trading commissions, some full-service brokers charge an annual fee based on account assets.

Full-service firms include Merrill Lynch, Smith Barney and Morgan Stanley.