Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.1 6/24/83; site trwrba.UUCP Path: utzoo!watmath!clyde!burl!ulysses!mhuxr!ihnp4!zehntel!hplabs!sdcrdcf!trwrb!trwrba!suhre From: suhre@trwrba.UUCP (Maurice E. Suhre) Newsgroups: net.invest Subject: Discount vs Full Svc Brokers Message-ID: <1223@trwrba.UUCP> Date: Fri, 11-Jan-85 13:31:53 EST Article-I.D.: trwrba.1223 Posted: Fri Jan 11 13:31:53 1985 Date-Received: Mon, 14-Jan-85 04:41:34 EST Organization: TRW EDS, Redondo Beach, CA Lines: 35 I had an account of about $30,000 with a full service broker for about 5 years. I was only plus one year out of the five. During that year, I made about $3000, and I paid about $3000 in comissions. That ratio didn't seem too good to me. I was taking their advice pretty much as far as stock selection went. When I decided to follow Stan Weinstein's newsletter, The Professional Tape Reader, it naturally seemed to silly to use a full service broker. A friend recommended Kall and Co. They charged quite a bit less for commissions. Their charges seemed to be about 1-1.5% with the full service about 2.5%. I think Kall has a $30 minimum. Kall was not quite as good about interest on the cash in the account (compared to money market funds). If you are planning to be mostly in the market, then this should not be a serious consideration (second order effect). In short, if you are going to make your own decisions and don't need your hand held, you can save money with a discount broker. Check around, ask your friends, and read the charge schedule carefully. 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. The usual disclaimers about not being an investment adviser, etc., and I have no complaints with Kall & Co. Maurice {decvax,sdcrdcf,hplabs,ucbvax}!trwrb!suhre