What type of firms have licensed brokers available to assist with trades?

• A. Combination brokerage firms
• B. Discount brokerage firms
• C. Robo-advisors
• D. Hedge funds

Answer: (A)

Combination brokerage firms are those that offer a mix of services, including both the ability to trade without assistance and the availability of licensed brokers who can provide guidance and support for trades. These firms cater to a wide range of clients, from self-directed investors to those who prefer professional advice, thus providing added value through personalized service.

In contrast, discount brokerage firms primarily focus on providing lower-cost trading options with limited or no advisory services, which means they typically do not have licensed brokers on hand for assistance in making trades. Robo-advisors automate investment management and typically do not feature human brokers, focusing instead on algorithm-driven strategies. Hedge funds, while they do employ skilled professionals, are investment funds that manage portfolios on behalf of accredited investors rather than providing direct trading services to individual clients.

By understanding the structure and offerings of a combination brokerage firm, clients can make informed decisions about how they prefer to trade and the level of professional guidance they wish to have.