Which service do full service brokerages charge more for compared to other brokerage types?

Full-service brokerages typically charge more for financial planning services compared to other brokerage types due to the comprehensive and personalized nature of these services. Financial planning involves a deeper level of engagement, including assessing a client's entire financial situation, creating tailored investment strategies, and ongoing management and advice. This level of service requires expertise and significant time commitment from financial advisors, which is reflected in the higher fees.

In contrast, basic transactions are generally more straightforward and can often be handled at a lower cost by discount brokerages, which do not provide extensive advisory services. Investment analysis may also be offered by various types of firms, with some providing this service at lower rates, especially through technology-enabled platforms. While online trading tends to have lower fees due to its automated nature and high competition among discount brokers, this is not the case with full-service offerings, where personal interaction and customized solutions justify the higher costs. Thus, financial planning services stand out as the service with the most significant difference in pricing within full-service brokerages.