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Bogeybunky@xxxxxxx wrote:
>
> I never see any comments on this forum from traders who are using some of the
> more heavily advertised discount commodity brokers such as: Jack Carl, Lind
> Waldock, Ira Epstein, First American, et al.
>
> I would be interested in hearing any experiences (good or bad) with any of
> these type brokers.
This is a response to both the above question and John Lothian's post.
I tend to agree with him that it may be worth a small premium to trade
with an experienced broker rather than a discount firm, (unless you can
get *really* low rates). I cannot compare with a deep-discounter since
I have only traded thru two accounts (one of which was a short-lived
stay with a fs broker). Altho I am not actually not answering about the
discount service, perhaps it will be useful to you or others. If not, I
apologize.
I am a customer of Jack Carl's "one-on-one" service. Actually you are
assigned to a pair of brokers who are actual experienced brokers, not
clerks. I have had the same pair for the past 3 years. I believe I was
told that their combined exp. at the time I signed up was 10 years.
Their accuracy has been excellent. There have been only 2 desk errors
and 1 floor error in about 300 ? trades. With one error, the broker
remembered the order and offerred to make it good. One, he immediately
offerred to review the tape. On the floor error I wrote a letter which
they forwarded to the exchange who investigated and then wrote back,
saying there was no wrong=doing due to a fast market.
With very few exceptions the fills have been quite good. I can't really
comment on speed, since I am a position trader, sometimes not even at
the phone they call on.
Their initial rate for this service is $43/RT compared to $25 (?) for
their discount service which I believe goes thru clerks. However, after
you are with them for a while you can negotiate a lower rate.
The level of individual service is not such that they are going to catch
every error. If you are in Jul. wheat and want to get out, and say sell
1 Mar. wheat they may not catch it. That being said, they know me by
name and (even know my acct. #) and style of trading. They also will do
a few things a discount service will not, such as OCO orders where not
taken on exchange, mkt. price "alerts". However, they won't do the wide
range of orders that a full service broker might take (like if
jellybeans go up to 100, sell a Mar. jb option at 20 ob).
I consider working with these 2 individuals worth the small additional
amount I pay above the discount rate. What I'm not sure is, especially
since my small account size requires me to take small positions (usually
Midam or options) is whether I should seek one of the really discounted
commissions like $20 (online?), but I'm not at all sure I could get that
with the v. small account I currently have.
There is something i am curious about. I frequent a number of the sites
which have a fair number of beginners on them as well as experienced. I
am often surprised by some of the errors described there. Are these
actually errors due to these relatively new clients? Or is the typical
error rate, even among full service brokers, higher than what I have
experienced?
[no rel. to JC ex. as a customer]
Conrad Bowers
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