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.
Non-Tech : Online Broker Down - Sue 'em - EGRP, JBOH, AMTD, SCH, NDB
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Pluvia who wrote ()2/8/1999 1:32:00 AM
From: Norman Stone   of 253
 
It seems to me that there are two kinds of problems here: technical breakdowns and customer service. While they get more strongly coupled when systems go south, their solutions are independent of each other.

Clearly, E*Trade has bit off more than it can chew technically, and I would hate to have their problems. But they are not unique. I think we are seeing that these cheap commissions are not that cheap when you factor in the overload problem -- after all, overload occurs...when? When everyone wants to trade because there is action in the market. If the overloads occurred only when the market was quiet, who'd notice?

So I think it is "buyer beware" on the overload problem. I predict that commissions will become more expensive as these (or other more savvy) firms begin to get a handle on the real overhead of a robust system under load.

How E*Trade has chosen to handle these problems on the customer service end is another matter. I think they are just thrashing and have no strategy at all, and they are deluged with errors, complaints and threatened lawsuits. Should they be sued? In the cases where they have violated their own fine print, of course they should, but I seriously doubt that anyone will be awarded anything more than face value of what they have lost. I think the courts would recognize the chaotic circumstances, and would not charge negligence. The industry is still young, and nobody is getting it right yet.

We all want the best of both worlds -- cheap fast executions and full accountability. It ain't gonna happen, at least for a while. I have two accounts -- my online account is with Farsight, and I have no complaints beyond the typical delays during peak intervals. But I also have a "real" account with Olde -- and I call them when I absolutely have to know a trade will go off. It costs more, but if it is that critical, then I am probably in a high risk/reward situation already, and the last thing I need is more risk.

"If you have to fight, you have already lost"
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