I happen to be a Fleet Bank customer which is buying out Quick and Reilly. The brokerage firm business has been extremely competitive recently. Eventually the brokerage firm business will be a thing of the past while people trade directly with an internet trading system. But this is a bit down the road from now.
With the fact that currently you still need to have a brokerage firm, and by me trying Datek, and having used Waterhouse in the past, I myself am considering using Quick and Reilly because of the Fleet takeover. The reason is that as a Fleet Bank customer, I have a branch right near me where I can handle my banking, brokerage, and everything. Sure, Fleet Bank has their own brokerage firm before they decided to go for Quick and Reilly, however Fleet Bank never was competitive with their brokerage. They had high commisions, and basically they didnt do much in the way of the brokerage area other then allow you to buy and sell stocks.
Im curious though as to why Fleet Bank rather then improving their brokerage firm, they decided to buy Quick and Reilly.
If Fleet Bank were to offer a money management account with free unlimited checkwriting, and where when I deposit my money into my Fleet accounts I can immediately have it available for trading stocks, the account would be quite convienient and even for a little more in commisions over another broker, the ability to go to the local bank branch which is right near me where I can instantly go to deposit funds or whatnot is well worth it as long as it gives all the advantages of all other competitive brokerage firms.
My guess is that we will see alot of discount firms and banks merging for various reasons.
Assuming the banks which merge with discounters provide competitive services at the same price and over local branches, why would one choose a company such as E-Trade when the commisions are the same as Quick and Reilly with online trading. In my opinion the banks which merge with discounters have the upper hand. |
