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Non-Tech : SWS - An undiscovered gem

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To: Gary who wrote (347)	7/7/1999 10:28:00 PM
From: John Chapman	Read Replies (1) of 504

Rita and Gary: I have had some problems at full service brokers too. With those, instead of having to put up with down times, one has to wade through a secretary. MDB has it all straight now. I have to say a call this morning to immediately cover by wire or face 90 day restriction, "insufficient funds" for buy trades made 6 days ago was a bit nerve racking. I was told the reason for the shortage was their rule of not crediting accounts until sells have cleared and it is up to the customer to somehow track what has cleared. MDB has what they call the credit balance that shows on your screen. I thought this amount was available for buys and was told that only the part of it that reflects cash and any cleared sells can be used to buy. The credit balance immediately reflects trades upon execution but might not be really available until 3 days later. One can see how much of a nightmare that would be if you are trading theee four times a day. I was also told MDB was not intended for day trading or very short term tradiing because of the waiting period. That is why I said MDB was for traders who either keep a lot of cash in their accounts to cover up to 3 days worth of trading or who trade not more than once a week to be safe. They are very courteous, helpful, prompt, and freindly people. While I am at it, another MDB rule one finds out about after setting up an account and getting a password is that ALL short sales must be placed through a live broker. That was a shocker. Their brokers are very quick though. I was told that their program lets you know when a stock is not marginable when you try to trade generally they will allow $3 plus stocks to be margined. Have not tested that one yet. I feel like their beta tester.

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