Jorj,
Getting a kick out of reading the Schwab email repsonses. I have always just got some worthless BS from those guys. Here is my last letter and their response. Notice they skirted the whole question. I just found out yesterday about a new quick one that they are pulling on all their customers. I need to call my team at 8:30.
++ MY LETTER
Schwab,
It was very exciting to see that Schwab finally has lowered their commission. I have been sticking with Schwab because I was told they were looking at doing some stuff to lower their commissions to be more competitive. When I looked closer at the new rates, I was very disappointed. One must be a daytrader to take advantage of these rates. I have two points/questions:
1. I can't imagine that these new rates affect a very large proportion of you clients My guess is less than 2-3%. . 30 trades per QUARTER??? (come on) And only then do you start getting the new rate. What percentage do you estimate would benefit from the new lower rates.? I trade a fairly good clip and I won't see any benefit. If I do, it may be for a couple trades.
2. What is this PER ACCOUNT stipulation??? IF I have one account with Schwab and make 90 trades per quarter, I benefit. If I spread these trades over three separate accounts, I don't benefit. You guys still make 90 commissioned trades in both cases. My guess is it would be too hard for you guys to keep track of.
Which brings us to the crux of the matter. Did you have someone from the IRS come up with this new 3 tiered commission schedule? I mean, it complex and bracketed just like the tax code.
Why don't you just do EVERYONE (including yourself) a favor and just lower the commission rate overall. The heavy traders would benefit the most (like you want) and the person that trades once a year, well you wouldn't make quite as much on that one trade. The lower commissions would stimulate more trading, which would be good. I think you guys have dropped the ball here. I hope this isn't the final answer to lower commissions at Schwab.
++THEIR RESPONSE
Dear Mr.. XXXXXXX:
> > >
> > > Thank you for your e-mail. Unfortunately we do not give out information on what effect and how many customers will take advantage of the new discounts.
> > >
> > > If you have any further questions or concerns, please do not hesitate to contact us. Thank you for using Schwab's Electronic Brokerage Services.
> > >
> > > Sincerely,
> > >
> > > XXX XXXXXXXX
> > > Schwab Signature Services Online
> > >
> > > (c)2000 Charles Schwab & Co., Inc., member SIPC/NYSE
> > >
> > > -- Original EMail Message, Contact #13774068 --
> > >
NOte: I edited out the Schwab guys name |
