Full service brokers, in this day and age of low cost mutual funds and discount brokers, are really nothing more than machines for ripping off retail investors.
About this quote
- What does it mean?
- Traditional brokers charge high fees compared to modern alternatives, making them a poor choice for individual investors.
- In plain terms
- Old brokers charge too much compared to cheaper modern options.
- What can you take from it?
- Use low-cost funds or discount brokers instead of full service ones.
Where it applies
Putting it to work
Questions to consider
- What fees are you paying to invest?
- Do you need a broker?
Another view
Full service brokers may still offer useful human guidance for some.
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