The choice between Discretionary, Advisory and Execution-only depends completely on your priorities.
If you don't want to be involved in share selection, but want your portfolio actively managed (rather than just tracking the index), then you need a discretionary or advisory service.
If, on the other hand, you prefer to handle your investments yourself, and don't need or want the advice, an execution-only broker is your best choice.
The table below shows how the difference in commission charges between a full-service and an execution-only broker mounts up if your average bargain size is £5,000.
If you only trade once, the difference is tolerable. If you trade 36 times a year (just 3 times a month) the difference is a staggering £2,340 - not far short of half your staked capital.
|Number of trades||Discretionary (1.6%)||Execution only (0.3%)|