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

To: peter michaelson who wrote (7532)	3/25/1998 12:26:00 PM
From: NIng Zhao	Read Replies (2) \| Respond to of 16892

Does anyone know why Datek only offering 4% on free balances? All other firms offer money market funds with yield over 5%. Thanks

To: peter michaelson who wrote (7532)	3/25/1998 1:36:00 PM
From: peter michaelson	Respond to of 16892

I just finished trying to backwards calculate the interest earned from my February Datek statement. I had lots of shorts through the whole period. I can't get to the exact interest earned number that Datek shows but I'm within 5%. My spreadsheet work shows that interest is calculated on the sum of all cash balances from all accounts less the value of shorts. I see no cost of borrowing collateral on shorts. To be specific, I took the average daily balance in my margin account, plus the average daily balance in my short account less the average daily market value of short positions. This worked out to a positive average balance. 4% divided by 360 days times 27 days times this average balance is within 5% of interest earned per the statement. Would someone like to replicate for confirmation? peter

To: peter michaelson who wrote (7532)	3/25/1998 1:55:00 PM
From: RealMuLan	Read Replies (1) \| Respond to of 16892

peter: Datek's disclosure is full of lies. 1) They calculate interest any time they want, usually the end of months -- Not like what they claimed in the middle of the month. 2) They say <<Your monthly statement will show the average daily balance and the interest rate used to arrive at the amount of interest charged.>> I don't know how about your statement. Mine has never show the average daily balance, and interest rate, so there is no way for me whatsoever to arrive at the amount of interest charged. 3) About interest charge on short position on margin. They didn't practice this at least up to June 1997. I don't know what is the effective date for the Disclosure statement you posted. I am sure they changed in the middle of the last year, or maybe late last year, no one knows. Although I don't remember they send me any new Disclosure statement. I have account with them since last April. These language are not exactly layman's language, so I think Datek is just taking advantage of us. But now, I know Datek will charge me 7% interest no matter I sell short or buy long. For Datek, borrowing stocks are exactly the same as borrowing cash from them. And if you read Message #7527, I just hope the stocks we short are really there, but again who knows how Datek "cook" their books. Good luck.