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""FOR IMMEDIATE RELEASE
Contact: Jennifer Grant, Dirty Water Integrated
(646) 613-7785
jgrant@dwintegrated.com
NEW ONLINE BROKERAGE FIRM IS FIRST TO OFFER REBATES ON ALL EQUITY TRADES PLUS COMMMISSION-FREE TRADING ON ALL U.S. EQUITY MARKET ORDERS
BROKERAGEAMERICA, HEADED BY WALL STREET VETERANS, REPRESENTS NEXT EVOLUTION IN ONLINE TRADING
CONNECTS RETAIL INVESTORS DIRECTLY WITH MARKET-MAKERS
New York, NY, June 4, 2001 - In a first for the retail brokerage industry, Andrew Garrett, Inc., an SEC licensed NASD broker-dealer, announced today the launch of BrokerageAmerica, Inc. (www.brokerageamerica.com) - the only online brokerage firm to offer retail investors a rebate on every equity transaction, plus commission-free trading for all US equity market orders. In addition, BrokerageAmerica will offer one of the industry's lowest charges of $5 for each limit order executed by retail investors, making it the nation's overall lowest cost online trading firm, based on competitive brokerage commission and fee structures.
BrokerageAmerica is able to offer these cost savings to investors because of its unique business model that combines brokerage and market-making operations under one roof. Unlike most other online brokerage firms, retail investors using BrokerageAmerica may trade directly with a market-maker - who takes positions in stocks that are being bought or sold online - and bypass brokers who traditionally serve as "middlemen" in such transactions. By eliminating the middleman wherever possible, cost savings - in the form of rebates - can be passed along to all retail investors who trade with BrokerageAmerica.
Led by executives with long and successful records on Wall Street, BrokerageAmerica is targeting the growing number of self-directed online investors who seek to maximize trading cost efficiency and speed of execution. More specifically, BrokerageAmerica is focusing on investors who execute an average of five trades per month. Over the course of a year, BrokerageAmerica's pricing model will save the average self-directed investor between $500 and $900 (adding together rebates and commission-free transactions), compared with other online brokerage offerings. Rebates will total one-tenth of a cent per share on all transactions, and be deposited directly into each customer's online account, which then can be applied to future trading activity or refunded as cash.
"Our business model represents the next evolution in online trading," said Drew Sycoff, Chief Executive Officer, BrokerageAmerica. "It started with Charles Schwab, then Ameritrade and E*Trade took it to the next level. Now, BrokerageAmerica has reengineered the discount brokerage model, introducing an exciting alternative for self-directed investors who value low cost and speed over 'commoditized' extra services."
"By connecting the retail investor directly with the market-maker, we have introduced a unique, highly focused approach to retail brokerage, offering new levels of cost savings and more direct market access for our customers," said Don Camillo, President and Chief Operating Officer, BrokerageAmerica. "Equally compelling is the fact that our customer order flow will be vital to expanding the liquidity within our market-making operations. In this way, retail investors are helping to build a business from which they receive a direct and shared benefit."
As a market-maker and customer order flow origination point, BrokerageAmerica maintains position inventory and open order files in a large number of equities and can, therefore, match a significant part of its order flow in house. In instances where BrokerageAmerica must use third-party market-makers to execute trades, the firm will provide customers with the same per share rebate that it offers on internally executed orders.
In effect, BrokerageAmerica is allowing consumers to participate directly in the revenue stream generated by "payment for order flow"- the common industry practice in which a market maker offers a brokerage firm a payment for orders that the broker sends to the market-maker for execution. As such, it is taking a portion of the payment that a broker would normally receive and passing it on to its customers as a rebate.
In a continuing effort to streamline costs, BrokerageAmerica is adopting a no frills approach to its online brokerage operations. The firm will not, for example, offer equity research or other "add ons" that the self-directed investor does not want or need. It will, however, offer a full suite of online account information services, standard market data and a variety of equity order types, including limit, stop, day and good-til-cancel orders at a discounted rate, as well as trading of options, fixed income products, load and no-load mutual funds.
BrokerageAmerica has partnered with leading technology and business services providers to offer a best of class suite of services with a highly competitive underlying cost structure. The firm's key business partners are The Vantra Group, a leading provider of trading application services, and Penson Financial, a leading clearing services provider in the electronic trading space.
STRONG MANAGEMENT LED BY WALL STREET VETERANS
BrokerageAmerica is managed by a team of Wall Street veterans, with more than 150 years of combined experience in the brokerage business.
Drew Sycoff, Chief Executive Officer, is an accomplished investment banker. He has served as Chief Executive Officer of Andrew Garrett, Inc., since 1992.
Don Camillo, President and Chief Operating Officer, has significant expertise in the online retail brokerage business. Mr. Camillo spearheaded the development of the electronic retail brokerage business at Credit Suisse First Boston and managed trading operations for E*Trade securities.
Robert Cheslow, Head Trader, is a seasoned expert in the trading industry, who most recently served as head of market making operations for Schwab Capital Markets.
Revan Schwartz, General Counsel, has served in sales, management and General Counsel capacities for financial services organizations, including East New York Savings Bank and Hafco International Trading Corporation.
Sam Guidetti, Chief Compliance Officer, has held senior level regulatory compliance positions with National Discount Brokers, Mayer & Schweitzer, Herzog, Heine, Geduld, Inc. and the American Stock Exchange.
ABOUT BROKERAGE AMERICA
BrokerageAmerica represents the latest evolution in online trading. Headquartered in New York City, the company offers retail investors unprecedented cost savings through a rebate on all equity transactions and commission-free trading on all US equity market orders. BrokerageAmerica also offers discount trading on equity limit orders, options, and fixed income products and provides no-load and load mutual funds. The company is a subsidiary of Andrew Garrett, Inc., and is headed by Drew Sycoff, Chief Executive Officer and Don Camillo, President and Chief Operating Officer.
Andrew Garrett, Inc., is a member of the NASD, SIPC and MSRB. Established in 1992, the company has been an NASD member since 1994. BrokerageAmerica is also a member of the NASD, SIPC and MSRB and was established in 2000. |
