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From: rbg@cbosgd.UUCP (Richard Goldschmidt)
Newsgroups: net.invest
Subject: Re: Discount vs Full Svc Brokers
Message-ID: <708@cbosgd.UUCP>
Date: Tue, 15-Jan-85 16:01:27 EST
Article-I.D.: cbosgd.708
Posted: Tue Jan 15 16:01:27 1985
Date-Received: Wed, 16-Jan-85 05:34:20 EST
References: <1223@trwrba.UUCP>
Organization: The Silver Lining {Columbus Bell Labs}
Lines: 17

>One last item.  A full service broker usually charges quite
>a bit more for low priced stocks.  That is, the comission
>on 1000 shares of a $4 stock will be more than the comission
>on 100 shares of a $40 stock.  Perhaps 4.5% vs 2.5%.  Anyway,
>do your own investigation, and I vaguely remember this subject
>being discussed in the Money Magazine a year or two ago.

I have found that the discount brokers I investigated charged substantially
MORE for option transactions than my full service broker (Thomson McKinnon).
Also, since the price action on options is so volatile, I can ask my broker
to monitor one or two constantly and let me know about significant 
fluctuations.  I have never been able to get this level of service from a
discount broker.  So for option trades, a full service broker may be much
better...

Rich Goldschmidt     {ucbvax,ihnp4,decvax,allegra} !cbosgd!rbg
		     ARPA:  cbosgd!rbg@ucbvax