SI
SI
discoversearch

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.
Strategies & Market Trends : A Simple List of General Do's & Dont's of Trading:
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: Arthur Tang10/7/2006 5:52:10 AM
   of 769
 
Which brokerage to use?

There are attractive discount brokerages that each trade is only $8.00. But for 100 share trade of $1.00 small stock, it cost 10% of the share price. Too much overhead. You are best to be a larger trader, or only invest in large stock(over $10.00/share). In the old days, $10-15 stocks have more investors and move faster than small stocks which are shaky to begin with.

Then there are the mutual funds brokerages which also charges $8.00 per trade. They can offer market timing, if you trade in large blocks or your entire portfolio in one stock or mutual fund. You can market time between mutual funds and money market account daily if they allow you. If mutual fund gains 1% per day. Your portfolio may gain up to 35% per year if market time gets lucky. If not money market account will be 4.5% nowadays anyway. You have a minimum gain and gamble on maximum gain in mutual fund switching within the family of funds. SEC however does not allow fund managers to do market timing because they are insiders.

Last but not the least is full service brokerages. They charge 6.8% commission, half for the brokerage and half for the broker. So, your broker takes care of his/her customer. They have their own bullpen which makes many markets of stocks in Nasdaq exchange. Making and maintaining a market means that they talk to the management of the company. And the stock performance can be improved if earnings are watched and 1 year estimate of technical analysis may be known.

It all depends on how much investment decisions you want to make yourself? You can rely on different brokerages.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News