brkravit@uokvax.UUCP (01/08/85)
-bugs breath What about discount brokerage firms vs. full service financial services? Can Charles Schwaub compete with Bache? Let's here some comments about this for us poor investors trying to save a buck on broker's fees. Bruce Kravitz uokvax!brkravit
jug@whuxlm.UUCP (Grauman Joseph) (01/11/85)
> > -bugs breath > > What about discount brokerage firms vs. full service financial services? > > Can Charles Schwaub compete with Bache? > > Let's here some comments about this for us poor investors trying to save a buck > on broker's fees. > > Bruce Kravitz > uokvax!brkravit I have dealt with a discount broker since 1978. The savings in commissions have been sizable and, of course, the more active you are the more money you save. That's one nice feature of dealing with a discounter. Another benefit of dealing with a discount broker is that they (at least mine) do not turn accounts. That means, they do not call you up and pester you to sell something and/or buy something "hot" they have. In almost all instances full service brokers are interested in making their commissions more than in your making a profit. When they call you up to sell you the "greatest stock since IBM" they probably are pushing something in which the "smart money" has already been made and suckers are needed to buy the stock in order to realize that profit. On the other hand, discount brokers are not for everyone since, in general, they will not offer advice (which some people need since they don't have the means of doing their own research). My own opinion is that the advice offered by full-service brokers is overpriced and often after the fact (i.e., useless). Oh, I almost forgot, my discount broker is Richard Blackman & Co., Inc., of Paramus, NJ. This is the only discounter I have dealt with, and I am very pleased with the service and the low commissions (which may not be the lowest around - but satisfaction has some value too!). Joe Grauman AT&T-Bell Labs whuxg!jug or whuxlm!jug
stern@inmet.UUCP (01/15/85)
I use Fidelity Investment Discount Brokerage for a number of reasons:
(a) They're right here in Boston
(b) They're very competitive as far as discounts go
(c) They are extremely easy to deal with, especially since I have a
Fidelity money-market account and all of my transactions are
conducted through this account. All I have to do is make a phone
call.
I must admit I've been looking at switching to Charles Schwab, since
I think their rates are roughly the same, and money-fund switching
is also available. A few months ago, there was an article in "Barrons"
that pointed out a few problems with discount brokers -- not executing
transactions, executing them late or at the wrong price, etc. I
can't remember exactly which brokerage houses were mentioned, but it
might be worth the time to read the article before choosing a house.
I believe it was in Sept or Oct (I'll check the old notebook and see).
Hal Stern
ihnp4!inmet!stern
Disclaimer:
I have no affiliation with Charles Schwab, Fidelity Investments, "Barrons"
magazine, or any other firm outside of my employer. These views are my
own and are therefore probably not everyone else's.lmiller@ucla-cs.UUCP (01/27/85)
I've had good luck with commissions at FULL SERVICE brokers, both Dean Witter and Prudential Bache. You tend to work up a personal relationship with the broker, and even for my piddling transactions, the commissions have been the same as Schwab. Don't pan the research. None of my brokers has (yet) to tout me onto some hot offering, but the reserach departments performa a valuable service. I was interested in utility stocks, and their utilities summaries gave me all the info I needed to make my own informed decision. If this information is also available summarized elsewhere, fine, but I can get it in a timely manner free.
brett@ucla-cs.UUCP (01/27/85)
Charles Schwab is one of the most expensive of the discount brokers.
Some smaller firms where you can save more than at Schwab include:
Ovest Securities, Rose Securities (owned by Chase-Manhattan now),
and Brown and Company.
I've dealt with Ovest for some time now. I switched
to Ovest after having had bad experiences with
an account rep. at Merill who moved to Bache. I was
inexperienced and wanted to trade with a high frequency following
a popular market letter (Zweig). Merill Lynch is probably not
appropriate for traders who follow a market letter.
When I opened my account Ovest's minimum commission was 30.00.
Now the minimum is 35.00 and I typically pay it or 42.50
for trading 200 shares. OVEST HAS A FLAT RATE COMMISSION
SCHEDULE. Even for high priced issues such as IBM,
Ovest charges 40.00 for 100 shares. I think Schwab, if I recall
correctly, has a percentage of gross amount. So you couldnt get 100
shares of IBM at 40.00 commission. (They may have changed this
policy - but I doubt it).
Schwab does provide 24-hour calling, which Ovest doesnt. Both
will pay interest on outstanding balances.
--
Brett Fleisch
University of California Los Angeles
3804 Boelter Hall
Los Angeles, CA 90024
Phone: (213) 825-2756, (213) 474-5317
brett@ucla-cs.ARPA or
...!{cepu, ihnp4, trwspp, ucbvax}!ucla-cs!brett
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