Ever wondered what the actual difference is between a full service brokerage firm and those discount brokers everyone talks about? I spent some time looking into this because honestly, the terminology gets confusing.

So here's the deal. A full service brokerage firm is basically a business where stockbrokers handle buying and selling assets for you. But unlike discount online brokers that limit your options to keep fees low, a full service brokerage firm gives you access to way more investment products. You pay more for it, but you get more flexibility.

Looking at who dominates this space, Charles Schwab actually stands out pretty significantly. They've managed to do both full-service and discount brokerage, which is kind of rare. Based on satisfaction studies, Schwab has maintained strong ratings compared to competitors like Edward Jones and Fidelity.

What can you actually get from a full service brokerage firm beyond just buying stocks? They'll handle bonds, options, mutual funds, ETFs - the standard stuff. But they also get you access to things online brokers can't touch. Penny stocks, foreign-issued securities, IPO access, specialized debt offerings, limited partnerships. The range is pretty extensive if you find the right firm.

Here's what really sets them apart though. You get a dedicated financial advisor assigned to you. They help with actual financial planning, retirement strategy, sometimes even tax advice. It's personalized service instead of just clicking around on a website.

Now the catch. A full service brokerage firm typically charges 1 to 2 percent of your assets annually. So if you deposit 100k, you're looking at 1-2k leaving your account every single year just for their services. That's a significant drag on returns.

The real question is whether the advice justifies the cost. If your portfolio isn't growing at least 12 percent annually after fees, you're probably better off switching to a discount broker and managing things yourself. The math has to work out, otherwise you're just paying for convenience that doesn't pay for itself.