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Non-Tech : DATEK- COME LOSE YOUR MONEY -- Ignore unavailable to you. Want to Upgrade?

To: BradC who wrote (11)	11/12/1998 8:36:00 AM
From: Raj Ramaswamy	Read Replies (1) \| Respond to of 38

Per SEC rules, technically, sale proceeds needs 3 settlement days...same for BUYS too...you have 3 days to pay for the buy.. I think Datek is doing is to "advance" their own money as a credit..while other brokers usually update your balance next day....and again for further trades only. Brokers such as suretrade may give the sell money next day but will not send you the check (if you decide to take the money out.) until the settlement days are over.. Raj

To: BradC who wrote (11)	11/12/1998 8:39:00 AM
From: Fridrik Skulason	Read Replies (2) \| Respond to of 38

> I don't understand why it would be in a brokers best interest to withhold the credit.. RISK consider the following scenario: A Datek customer sells all his stocks, liquidating the portfolio, and closes his account - withdrawing the money. The next day the stock market crashes....badly. One of the buyers of the shares mentioned above goes bankrupt, and on the settlement date is unable to pay for the shares bought. Where does that leave Datek ?

To: BradC who wrote (11)	11/18/1998 9:50:00 PM
From: Randall Thomas	Respond to of 38

<<<Very good point. I have been a bit puzzled as to why so many people are complaining so bitterly about Datek and just keep coming back for more licks day after day. This business about getting your credit immediately must be the answer. There has to be some very compelling reason why people are staying with Datek. My question: Is Datek the only US broker to offer this deal? If so why are more brokers not getting in on the action if it is such a big draw?Very good point. I have been a bit puzzled as to why so many people are complaining so bitterly about Datek and just keep coming back for more licks day after day. This business about getting your credit immediately must be the answer. There has to be some very compelling reason why people are staying with Datek. My question: Is Datek the only US broker to offer this deal? If so why are more brokers not getting in on the action if it is such a big draw?>> the following i know for fact do: etrade, brown, fidelity i know schwab does NOT, disgraceful (last I saw was 4x cash balance in buys before they start reviewing your buys)