Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.2 9/18/84 exptools; site whuxlm.UUCP Path: utzoo!watmath!clyde!burl!ulysses!mhuxr!ihnp4!whuxlm!jug From: jug@whuxlm.UUCP (Grauman Joseph) Newsgroups: net.invest Subject: Re: Discount Brokers Message-ID: <641@whuxlm.UUCP> Date: Fri, 11-Jan-85 11:17:57 EST Article-I.D.: whuxlm.641 Posted: Fri Jan 11 11:17:57 1985 Date-Received: Sat, 12-Jan-85 06:15:40 EST References: <2900002@uokvax.UUCP> Organization: AT&T Bell Laboratories, Whippany Lines: 39 > > -bugs breath > > What about discount brokerage firms vs. full service financial services? > > Can Charles Schwaub compete with Bache? > > Let's here some comments about this for us poor investors trying to save a buck > on broker's fees. > > Bruce Kravitz > uokvax!brkravit I have dealt with a discount broker since 1978. The savings in commissions have been sizable and, of course, the more active you are the more money you save. That's one nice feature of dealing with a discounter. Another benefit of dealing with a discount broker is that they (at least mine) do not turn accounts. That means, they do not call you up and pester you to sell something and/or buy something "hot" they have. In almost all instances full service brokers are interested in making their commissions more than in your making a profit. When they call you up to sell you the "greatest stock since IBM" they probably are pushing something in which the "smart money" has already been made and suckers are needed to buy the stock in order to realize that profit. On the other hand, discount brokers are not for everyone since, in general, they will not offer advice (which some people need since they don't have the means of doing their own research). My own opinion is that the advice offered by full-service brokers is overpriced and often after the fact (i.e., useless). Oh, I almost forgot, my discount broker is Richard Blackman & Co., Inc., of Paramus, NJ. This is the only discounter I have dealt with, and I am very pleased with the service and the low commissions (which may not be the lowest around - but satisfaction has some value too!). Joe Grauman AT&T-Bell Labs whuxg!jug or whuxlm!jug