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There's no broker here is the key word. Reducing cost by eliminating the
broker is way to cutout the middle man. Another BIG reason is no law suits
because of no broker go figure. They incur some legal problems because of
the system failure etc. but its limited due to documentation. Last but not
least no margin call problems or chasing uncollected debts. Even the large
firms like Merrill has been achieving this through managed money. Merrill
only receives about 15% to 20% from its reps the other from managed money.
I'm a series 7 broker as well and the old wire house days of yesterday are
gone just some keep hanging on IMHO.
Robert
associated Ron Augustine wrote:
>
>There's no "Broker" or phone call involved-- E-Trade clears electronically
>through their own clearing department. A Market order generally clears in
>one or two seconds at most. Whether or not they can confirm immediately
>depends on several factors-- like the amount of traffic on their Site or the
>current speed of the Internet in general. In Equities and Options that are
>trading slowly, you can see your trade clear if you're watching R/T
>time-and-sales.
>
>Like any competitive entity, they can charge whatever they think people will
>pay. It costs them very little to clear trades.
>_____________________________________
>
>At 11:32 AM 3/24/99 -0500, you wrote:
>>Hi There,
>>
>>I am not trading in stocks although i do have the series7 I am curious to
>know How does company like >Etrade,datek and other internet trading houses
>say they can give you confirmation in 60 seconds or less,at a >fee of about
>$8 per trade ........... Does the Etrade broker then contacts his
>"electronic clearing house"
>>and places this order for the client? How does this system work?
>>
>>Is their an online clearing house that charges less than $8 per trade that
>was they can make a profit.
>>
>>I can't imagine Etrade those after recieving an order placing a call with
>their broker and he places the order on the floor.
>>
>>Thanks in advance
>>
>>Bryant
>>
>>
>
>
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