Investor Trap: Beware of the Churn and Burn
Typically, stockbrokers earn commissions each time an investor enters a securities order to buy stock or sell stock. Full-service stockbrokers earn higher commissions than online stockbrokers because, unlike online stockbrokers, full-service stockbrokers provide investors with the added service of advising you when to buy, sell or hold particular investments. Because stockbrokers are paid on commission, there is an inherent conflict…