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The real clue regarding the attitude of the futures industry toward
customers, is the wide lack of published pricing for commissions and fees as
well as the creativity displayed in coming up with ways to assess additional
charges. There are brokers who provide published schedules for both discount
and assisted trading (some with all fees included) and a broker's
willingness to publish this information is certainly worth considering when
evaluating brokers.
Earl
-----Original Message-----
From: Tom Alexander <gta3@xxxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Friday, November 13, 1998 7:23 AM
Subject: futures brokerage commission
>It continues to amaze me that there really are people out there paying
>$100.00 per round turn. That is ridiculous!! Regardless of the size of the
>account, you should NEVER pay more than $25.00, and that is the very high
>end!
>
>The reasons given for such blatant rip-offs include:
>
>"I'm doing extra things (watching your trades, giving suggestions, watching
>to see if you are getting good fills, helping you to correctly enter
>orders, etc., etc.) that a discount broker won't do or doesn't care about"
>
>Translation: "I have to make a living off you and that living is in
>substantial part the difference between what you could pay and what you are
>paying."
>
>If you need/want suggestions pay for an advisory service. Good fills are
>not in any way related to the guy on some desk with whom you are entering
>orders. That is much more an issue of the FCM (Futures Commission Merchant)
>with whom your broker is affiliated. This IS important for a number of
>reasons but is not the point of this post. If you are a brand new trader
>and need/want help correctly entering your orders then it is worth a little
>extra, in the $25.00 range, to be sure you are doing what you want to do.
>
>The term "Discount Broker" is the most ubiquitous, misused,
>nothing-but-marketing BS in the industry. You can get BETTER service, and
>more EXPERIENCED brokers for a lot less than the average trader is probably
>paying on this list.
>
>Just remember this, "Discount Broker" is a marketing term, not in any way
>close a complete description of what one is or is not getting or paying.
>
>
>Regards,
>
>Tom Alexander
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