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Having three accounts is partly driven by the concerns you've outlined
below. I place a good deal of reliance on the SIPC as the
"insurer" against such financial failure. Yes, recovery would likely
be long and drawn out, and financial failure of my broker is a most unsettling
thought, so the concern for a solvent and well managed/capitalized firm
remains very important.
Most of my holdings remain in my oldest and most active account.
I have very small amounts in the other two. I try a broker and based
on sustained and consistent performance, execution, and customer service,
I will let my trust grow with these companies. I may be stretching,
but if they are customer driven and show signs of good management, I'm
assuming that they are running the business on the same principles.
This is clearly a subjective approach; however, these are some of the attributes
that I seek in a broker. So if I can find one that's better, I will
start moving money over slowly. Again, it's service that I'm following
with my accounts. I'm assuming/relying on the broker's membership
in the SIPC to keep the issue of insolvency or failure to meet financial
obligations at bay.
Dave
Guy Tann wrote:
Dave
Why
the three accounts?We have our account
with Schwab with a current commission rate of $14.95 for up to 1,000 chares
and $20.00 for up to 2,000 shares.
Our
primary concern is the protection of assets as opposed to saving $5 on
a $100,000 trade.Maybe we’re a little
paranoid (and that’s why Glen and I keep meeting on our firewall list J),
but when you have a fairly large balance, I think the first concern should
be the size and stability of the firm you’re doing business with.
I’d
be interested in hearing any thoughts about firms and their ratings in
terms of protecting your assets first, then their execution price.
What
is the best approach to measure stability in a brokerage firm?If
the NASDAQ drops 50% and the firms traders can’t meet margin requirements,
how solid is the firm?
Guy
-----Original
Message-----
From:
owner-metastock@xxxxxxxxxxxxx [mailto:owner-metastock@xxxxxxxxxxxxx]On
Behalf Of Dave Nadeau
Sent:
Saturday, March 25, 2000 8:45 PM
To:
metastock@xxxxxxxxxxxxx
Subject:
Re: Best Trade Execution (Personal Experience)
My
experiences with Interactive Brokers has been outstanding. The price
for options is $1.90 per contract (no mininum). Equities are $.01
or $1 per 100 (minimum $1). So the price is good if you are doing
smaller positions, and comparable if you are doing 1000 shares or 10 options
contracts. Orders go direct to the exchange or pit, not through a
broker. The software is somewhat dated compared to many of the GUI
applications but works reliably and quickly. I haven't been successful
with stop orders; this may be a problem if you are not in or "near" the
market while your positions are open.
I
also have an account with Track Data Corp. The software is good and
executions are fairly rapid. You are looking at $13 -$16 per trade
for equities and the low $20s for options. This is the account I
use for my intermediate positions when I have to have stop orders and will
be away from my positions for a while.
I
have a third account at Bidwell and Co. The trading is browser based
and routes through a broker so it seems slower than the rest. They
are in the $13-$16 range as well. Service has always been excellent.
For
a complete listing with user comments try this site, http://www.sonic.net/donaldj/brokers.html
I am in no way affiliated, but have found it very helpful in evaluating
brokers.
Dave
Nadeau
Ron
Warshawsky wrote:
Dear
List members,
Can you please share, which internet broker provides you with the best
trade execution price (for the short term (2+ days) positions).Regards
and Thank you in advance
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