What are the drawbacks of using a discount broker over a full service broker to invest my IRA Rollover funds?

Answer 1

Completely ignore the last answer. Since you have asked this question I will assume you don't have a ton of experience in the market, or you would know the differences already. Stay away from a discount broker as it is important you know exactly where you want to put your money at all times and when, if and how much to move at any time. Most people who have jobs and a life do not devote enough time to research to possibly be able to do this profitably. Find a good broker with reasonable costs to devise a plan for you. This person may charge more than a discount guy but if they understand what your goals are they can make up for their cost in the better returns and safer diversification they can provide.

Answer 2

If you make your own investment decisions, there aren't any drawbacks.

The full service broker is there for people who need hand-holding, who need "advice," and someone to shuffle the responsibility on to.

You don't say what you're invested in, but a rollover should be a simple matter and not require "advice."

In today's technologically advanced systems and internet service, the full-service broker is so 20th Century.

If you're looking to diversify, look into ETF's. They trade similarly to stocks, and you can buy, or sell short the entire market, w/o a downtick rule.