Capital Alliance Group - CPT (CDNX) Message Board

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Gold/Mining/Energy : Capital Alliance Group - CPT (CDNX)

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To: keith massey who wrote (41)	3/16/2000 11:31:00 PM
From: AriKirA	Read Replies (1) of 960

Hey keith I just realized there is a pretty active StockHouse thread on CPT... I found the following post quite interesting. Seems to be a win - win situation for SEG, the brokerage house and the individual investor! Keith Massey (ID#: 50228) SEG's model 3/15/00 7:23:24 PM 1123933 An individual had made a statement about the cost of trading on SEG's portal and I realized that some people might not understand the cost structure. The beautiful thing about the SEG model is that you don't pay the going rate plus the portal fee. You only pay the going rate that the brokerage firm normally charges, there are no extra costs SEG is providing a service to its partner brokerage houses. They are bringing them customers and also advertising the brokerage name and services. This type of worldwide advertising would normally cost the broker a huge amount of money. In addition, for brokers without online services they are also providing online trading for all their customers through the portal. SEG's pay for this service is 40% of the commission. In other words, if the customer goes through SEG or goes directly to the broker in that country the cost is the same. However with SEG you also get all the other added services such as realtime data from around the world, realtime news, and analysis reports from all over the world. In addition, they are also going to provide other incentive programs such a free trades for every X number of trades, discounts on the trades for volume and points rewards (eg. Air miles). They also have exclusive long term agreements with each partner broker that stops them from stealing the customer after SEG signs them up. So I guess the question is: If you had a choice to use SEG or sign up directly with a broker in a foreign country why wouldn't you use SEG? The cost is the same and you get a ton of things for free, along with convience. I thought the 40% of each commission sounded a little high at first but then I found out that 40% is the going finders fee and what is paid out to other brokers. Plus these brokers would likely not have these customers if SEG had not brought them to their front door. Best Regards KEITH

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