Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Ameritrade -- Ignore unavailable to you. Want to Upgrade?

To: RON BL who wrote (426)	1/24/1999 12:28:00 PM
From: Bob Duncan	Read Replies (1) \| Respond to of 513

Take a look at Message 7444415 Certainly on paper AMTD is not losing many accounts - however the more important consideration is are they losing assets within those accounts. The people most frustrated with AMTD are the most frequent traders (i.e. 5 times per week or more) and typically they have larger account balances not to mention generate much more revenue for the company. Don't you think AMTD would logically rather lose 10 accounts that each trade 5 times a year vs. one that trades 400 times? Also, keep in mind that most people don't simply shut down an online account if they have a problem with it, they simply open another one. For instance, I have become sick of Etrade's service and am transfering most of my assets to Brown and Co. However, I am leaving a few thousand in my Etrade account so I can have access to IPO's. So, on paper Etrade has not lost a customer but offically they have lost tons of trading revenue. Also, what was the average account size this quarter vs. a year ago?

To: RON BL who wrote (426)	1/24/1999 2:22:00 PM
From: Colin Cody	Respond to of 513

As with Bob's excellent response.. OBVIOUSLY AMTD is adding accounts. With the cleaver ads being plastered on the T.V. touting $8 commissions (not mentioning this is ONLY if you are stupid enough to place MARKET orders, rather than LIMIT orders on the most popular stocks). WHY Market orders? Because on 1,000 shares that cost you $62.50 to $125.00 more, and AMTD get's a payment for orderflow kick-back from the Market Maker of a good portion of that extra charge. People NOT leaving? That means taking the proactive measure of CLOSING/TRANSFERING the account. What about people like ME? I just stopped USING them. Sure they can keep my certificates for me, I'm not paying $15 per certificate to pull them out now. But they aren't getting any commissions out of me either... not until I feel like selling a stock they hold. And then I'm pulling the $$$ right out of there to use at another brokerage. And even when my LAST certificate is sold, the account will STILL BE OPEN. Why would I waste my time closing it? Point is when AMTDsays no one is closing accounts... BIG DEAL! It is the USE of the account that counts. Colin

To: RON BL who wrote (426)	1/25/1999 12:58:00 AM
From: Gil Gilbertson	Read Replies (1) \| Respond to of 513

Come on now, come on back down to earth. Ameritrade posted a profit for one reason only, they cut their advertising budget to a fraction of previous quarters and coasted on previous ads so they could show a profit. I like Ameritrade and their concept, but reality will prevail. They are worth about 25 to 30 bucks max in a good market. If we head downhill bigtime with the other internet stocks, look out below. In a slow market the 8 bucks commission will kill them fast. I would indeed show some caution in this area. As a matter of fact, If I were a stockholder of Amtd or any internet stock, then, I would be running scared. So many young and inexperienced players in this game are now going to just be canon fodder for the pros. There is nothing new in this game, these are called story stocks, they come along every couple of years. After they have run their course, they descend until all unwilling sellers are liquidated by margin calls, fright, change in rules etc. Meanwhile, the novice thinking he owns a future gold mine hangs in until his last dollar. Then when the cycle completes the pros pick up the shares for nothing and the cycle goes up again. In a nutshell, the novice trades his money for stock at the top. and the pro trades his money for the stock at the bottom. Fair? I dont know but thats the way it is.... This market is ripe and with Hong Kong down 400+ tonite, it could be quite a show tomorrow, especially if Clinton fortunes turn for the worst....this is a good time for casharoo..... Gil