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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
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