SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : ETRADE Sucks!
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Gil Gilbertson who wrote (539)10/22/1997 4:02:00 PM
From: Emec  Read Replies (2) of 3262
 
I had a talk today with a friend og mine who was a broker for 15 years with Paine Weber and AG edwards. He is a friend and has no reason to lie to me. He explained how trading works and advised me against trading with any of the deep discount brokers since they trade on secondary markets. He explained that in most every case, you will pay more for a NYSE stock through a deep discount broker such as Ameritrade, Etrade or Scottsdale than with a non deep discount broker. The reason is that deep discounters trade on secondary markets such as the Midwest Stock Exchange where the bid and ask are higher than on the main market. The deep discount broker gets an additional kickback on the trade, generally 2 cents per share. The customer generally pays 1/16 to 1/8 more than if they went through a "regular" broker so on a 1000 share purchase, you may pay $62-$120 more for the purchase-there goes your commission savings. The worst part is that the customer doesn't even realize that he got screwed because he is seeing the bid and ask no that exchange so thinks he got a fair price. Similar story for NASDAQ stocks although he said you sometimes can get the same price. Generally the executions will be beter with a non deep discount broker. Think about it he said. How cna they possibly make money at $8 or $9 per trade. There is additional "commission" being funneled through there somewhere and it is in the stock price you pay.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News