Can brokers provide ratings/research?

Discussion in 'Retail Brokers' started by killATwill, Sep 2, 2020.

  1. Curious if US brokers can rate stocks or ETFs like Morningstar, or if regulation prevents them?
    murray t turtle likes this.
  2. xandman


    That area of brokerage used to be a major revenue driver. Today we simply have BUY, SELL or HOLD recommendations. You see them everyday mentioned in the press. Each recommendation comes with a research write-up. The write up that you see in the press is a short summary.
    killATwill likes this.
  3. Thanks Xandman. Wondering if that's the case because banks have licensing that allows them to do that. If Robinhood wanted to issue B/S/H ratings, would they be able to do it, or would they need a license for that activity?
  4. BMK


    Schwab provides ratings, and I believe many other US brokers do also. Schwab offers something called an Equity Ratings Report. As Xandman said, it is primarily a buy, hold, or sell recommendation, but Schwab offers a little bit more. Of course, these reports are not available for every stock. I've attached a copy of the Schwab report on Zoetis.

    The rock-bottom discount brokers like Robinhood, and firms like Interactive Brokers, which cater to sophisticated active traders, institutional investors, or financial professionals do not offer these products to their retail customers. Or if they do, they are a la carte products that you pay extra for.

    Schwab does not charge extra for this stuff. And I suspect that Fidelity and Ameritrade offer something similar, at no extra charge.

    killATwill likes this.
  5. lindq


    It is a regulatory issue, and can open them to liability which they likely would like to avoid.
    xandman and killATwill like this.
  6. BMK


    Schwab also gives its customers access to Morningstar equity analyst reports, and some other sources of research and ratings, such as Ned Davis and Credit Suisse reports. Of course, not all these reports are available for every stock.

    Our account at Schwab is the most basic type of account they offer, with no frills and no monthly fees. Like almost everyone else who is not a licensed professional or an institutional account, I get zero commission on equities and ETFs, and 65 cents per contact on options. We don't trade futures, so I don't know what their commissions are. We do hold corporate bonds, and Schwab has one of the lowest retail commissions around, at $1.00 per bond, with access to the Moody's ratings reports. We don't pay anything extra for access to all the research.

    With all that being said, we are generally very dissatisfied with their customer service. It is rare that we need to speak with a live rep. But when we do, the phone hold times are outrageous, and live chat hold times are not much better. And I have often gotten someone who either did not understand my question, and/or gave an answer that was wrong, incomplete, or unintelligible.

    Zytrade and killATwill like this.
  7. BMK, thanks for sharing. This is awesome.
  8. ph1l


    Vanguard supplies Argus and MarketGrader reports for customers. For example,
    killATwill likes this.
  9. socool


    Depending but yes there should be some broker doing that
    killATwill likes this.
  10. Thanks
    #10     Sep 3, 2020