Dear Peter Stern,
Thank you for your answer.
I certainly appreciate the fact that a Datek co-founder is here on this board, responding to customer concerns. This is very telling to me, and I know this is not true of every brokerage house.
As you know I am not a Datek enemy. I duly note that IMNSHO, I feel very confident that Datek's executions are second to none, and the order routing the best. I also note that your accounting and margin policies are virtually flawless (at least in my experience) – this is no small matter, and for proof all you need is to talk to clients of some other popular brokers. ISLD was a boon to all traders and investors, and we can all thank Datek for somewhat leveling the field in the endless battle between the independent trader and the MMs. I also note that for those who do not use LII, your streamer is great (OK, it has some growing-pains type bugs); I could go on and on (good web design, generally reliable software, etc., etc.).
I have also defended Datek from unreasonable conspiracy theories, and accusations which result from lack of understanding how the markets work.
In fact, I don't even blame Datek for occassional glitches (such as Thursday), because no system will ever be 100% flawless. Failures do and will occur.
My problem has been system overloads due to taking on extra accounts, knowing ahead of time that the system cannot handle the extra pressure.
You say that you are doing all that's possible within reason to improve the system and you have taken steps to slow the account growth until you have systems in place that can handle it. I accept you word for it, and I'm very heartened by it. Maybe I'm naïve, or simply not very smart, but I not only believe you, I'm willing to put my money where my mouth is – I have stayed with Datek through thick and thin, and even though I've opened accounts with other brokers, I do the bulk of my trading with Datek.
Realistically, though, I do not see the flood of customers – refugees from the truly awful brokerages – slow anytime soon, ads or no ads. Unless you actually limit the number of customers, you will always be playing catchup with your system upgrades. In this light, an alternative might be a suggestion I floated before: set aside a special system dedicated to the active trader – charge somewhat higher commissions, demand a bigger account or otherwise make the service distinct, and supply a truly “silly fast” system to those customers.
I sincerely wish you luck in your efforts, and I have no doubt, that for all it's problems, Datek is still the best game out there.
Regards,
Morgan
PS I agree with you that money is not the most important thing. As soon as I amass even 50% of your net worth (and it won't be from trading, that's for sure) I too shall join you in preaching the virtues of not overestimating the importance of the mere filthy dollars. BTW, I noticed that Bill Gates gave away some 3.5 billion dollars to charity recently. I was staggered by his generosity and I cried in gratitude that he's such a generous fellow (I think of him frequently when my Windows PC crashes in the middle of a critical trade). Thank God he still has 97 billion left to buy groceries.
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