Well, just found this thread today and have read all of the messages and it looks more like the "Schwab rulez" thread, but here goes:
I opened my Schwab account about 6 months ago and was initially pretty happy with it. Much lower commissions than AGE, and I was able to deposit funds at a local office and have them immediately available.
As I started becoming a more active trader, though, I became more and more unhappy with them.
The main problems I have with them are:
1. Slow trades.
2. Arrogant, condescending tone of customer service.
I rarely use them now because I use Farsight these days for 90% of my trades ($10 commission, fast, and the only time I had a complaint, it was immediately made right).
*Most* of my trades through Schwab (E-Schwab on-line) take 15-30 minutes to fill. This morning and yesterday were actually surprising exceptions. Less than 5 minutes (Farsight is typically less than 60 seconds).
The problem I've had with Schwab's slowness is that I trade quite actively and often time my trades to the minute. Most of the trades I've done through Schwab follow this scenario:
1. Buy order placed on-line (market).
2. 15 minutes later and no fill, but Ask is still the same.
3. Another 15 minutes goes by.
4. Ask comes up.
5. I fill at new Ask.
This also happens to me on the Bid side. Each time it happens, it usually costs me a few hundred. I haven't kept tabs on exact figures, but estimate their inability to fill orders quickly enough after they're submitted has cost me a few thousand dollars.
I can get limit orders filled at Farsight but rarely ever could at Schwab. That's why I use market orders there.
Every time that I've called them to complain about my fill, I'm given excuses, even when I protest very strongly about extreme examples. When I called once to ask why an order hadn't been filled after half an hour, I was literally told "The market-maker has probably taken a lunch of coffee break". I remember that one well because it was a sell that didn't fill until the stock had tanked. And I'd placed the order long before any volume showed up.
Today is another example of why I dislike them so much. I placed an order to buy SYCR this morning (950 shares at market). The Ask was 2.21875 on low volume. A few minutes later, I got filled at 2.4375. Check the tape on this one. No other trades were even *close* to the amount at which I filled.
When I called them to tell them it looked like an obvious data entry error on their part (entered "7/16" instead of "7/32"), they first told me that it was likely the Ask had come up to that after I typed in my order but before it was actually executed. Was told it would be submitted to the "Problem Resolution Team". That was a little more than 2 hours ago. Still haven't heard back from them, even though I was told it would take 1-2 hours to get it reviewed. I even called them about half an hour ago and was told it was still in the queue as a "Priority One". When I asked if the number of problems reported was so great that even the highest priority level couldn't get looked at after such a long time, out came the condescending attitude I've grown so accustomed to at Schwab.
I was told that just because a bunch of customers didn't feel like they got the fill they deserved, doesn't mean Schwab is at fault and that they rarely are.
I had a similar problem with Farsight a couple of weeks ago. When I called, they immediately said it looked like a clerical error, and fixed the problem *while I was on the phone*.
I can't imagine any scenario in which this trade won't get corrected at Schwab, but when I've called them before with what I felt were very valid complaints, I've always been brushed off. My experience with them makes me suspect that *somehow* they'll not own up to any error on their part and that I'm just out of luck.
For a long time, I thought they were merely incompetent. Now I'm beginning to suspect ill intent.
I'll wait until my sell prices are reached on everything I've got in my Schwab account, sell them as they're reached, and write a check to Farsight to move the cash over there.
I'm sure I'll get flamed, but before anyone does, what I've stated here is *my* experience with Schwab, and any amount of flaming opinions to the contrary won't change what the facts of my experience with them have been. |
