AMERITRADE HLD A (NASDAQ:AMTD) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : AMERITRADE HLD A (NASDAQ:AMTD)

AMTD 0.979

-1.1%

1:53 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: esecurities(tm) who wrote ()	2/17/1998 9:51:00 AM
From: Jonathan Edwards	of 1848

They're paying $488 per new account (24.9M in advertising for 1Q98 with 51000 new accounts). This compares to $440 per new account in the year ago period (6.6M in advertising and 15000 new accounts). The average commission and clearing fee is $23 per trade, so each new customer has to make 21 plus trades before they recoup the average advertising expense. This smells very much like the AOL business model, which I think might be cause for concern, although I expect people will tend to stay with AMTD longer on average than they do with AOL. I wonder how long they intend to keep up the aggressive recruitment.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next