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Non-Tech : Datek Brokerage $9.95 a trade -- Ignore unavailable to you. Want to Upgrade?

To: Jim Gan who wrote (6778)	2/11/1998 4:59:00 PM
From: George McMeen	Read Replies (3) \| Respond to of 16892

Jim - Aufhauser pays interest on short Message 1522366 Message 1567081 > To be fair, their margin interest rate of 7% is pretty good. At Brown & Co, I currently pay 7.25% Is Datek truely 7.00%??? Cheers. George

To: Jim Gan who wrote (6778)	3/3/1998 4:05:00 PM
From: RealMuLan	Respond to of 16892

Jim: I dug out your post on Feb. 11 (#6778). You said something about Datek does not pay margin interest on your short. I am wondering that you were talking about the short by using your own money or by using the margin part? Because I just find out that not only Datek does not pay you interest on short if you use margin, they start to charge 7% interest on your short on your margin part. So actually it is not the situation that marginers and short sellers for Datek offset each other. The situation is actually that Datek gained 14% daily compound interest on the money they loan out. The 1st 7% is from the marginers who buy long, and the second 7% is from the shorters who use their margin to borrow the share to short. I am absolutely appalled by this. I did not know it until today. And they told me that E-trade and some other on-line brokers all start to do this now. I will have to do some investigation on this and see whether they are telling me the truth. Good luck.