Stockbrokers & Trading Accounts

by **b0rderc0llie** » Thu Sep 04, 2008 6:47 pm

Does anyone has any experience using a full service broker such as Smith Barney?

I am currently using optionsxpress, which is a discount broker. Rates are good, interface easy to use, and I have no complaints so far. However, I am worried about putting all my eggs into one basket (broker). The brokerage is a member of SIPC, the Securities Investor Protection Corporation, which protects against losses caused by the financial failure of the broker-dealer. The SIPC protects the accounts up to a certain sum of money. Currently, my account size is bigger than what SIPC has pledged to protect. Also, in a bad scenario where the broker has a financial failure, I am not sure if SIPC will still be around or will also suffer a financial failure.

Therefore, I am looking to park some of my assets in a full service broker, such as Smith Barney, which is under Citigroup, which I deem has less chance to suffer a financial failure as compared to a discount broker. Any advice?

by **b0rderc0llie** » Mon Sep 08, 2008 10:49 pm

Seems that nobody has any experience with full service brokers to share.

How about the discount brokers then? Do you like the ones you are using? Care to share what you like about them?

by **littlecupid** » Mon Sep 08, 2008 10:52 pm

Smith barney very ex....2 % to execute 1 trade...how to earn money like that ?
No visible advantage beside having a strong backing

by **b0rderc0llie** » Mon Sep 08, 2008 11:01 pm

I see. That's why I am still considering other alternatives instead of going to Smith Barney straightaway. One way may be to split up assets among a few discount brokerages to spread out the default risk. I wonder if there are other ways to hedge the default risk.

by **blid2def** » Mon Sep 08, 2008 11:07 pm

b0rderc0llie wrote:Seems that nobody has any experience with full service brokers to share.

How about the discount brokers then? Do you like the ones you are using? Care to share what you like about them?

I've accounts with both Interactivebrokers and ThinkOrSwim. Rates are low with IB, though I think TOS can offer to match rates of other brokerages.

Good thing about IB is that the interface is simple, and easy to use. Also, they have an office in HK, so if you've any issues, being able to call them during Asian daytime hours is useful. Wiring funds to them is handled quickly; no idea about wiring funds back yet 'cos I've no profits to show for my trades yet. Hahahaha....

I don't trade with my TOS account; just set it up to test the features. I can say the charting and option analysis support is much more superior to IB's. However, the interface is also more complex to use.

Opening accounts seems smoother and faster with TOS versus IB.

Both provide online, "live" or recorded webinars on various trading topics.

You can check out their websites for details.

by **b0rderc0llie** » Mon Sep 08, 2008 11:11 pm

Thanks grandrake.

I was thinking of exploring IB after you said in some previous threads that IB allows you to trade options on crude oil futures.

by **blid2def** » Mon Sep 08, 2008 11:14 pm

Yup IB allows that. When you set up your account, you can choose what markets you wanna trade in, what data streams you want, etc. (and you'll be charged a monthly fee for some of these).

by **iam802** » Mon Sep 08, 2008 11:16 pm

You guys are making me 'itchy'.

I am looking at Saxo ... any feedback on this as well?

Think they have an upcoming seminar on Sept 20 (not too sure what it covers...waiting for them to respond to my email)

by **blid2def** » Mon Sep 08, 2008 11:19 pm

Paiseh no idea on Saxo...

If you wanna' use Ichimoku charts, then TOS supports it; IB doesn't (I've submitted a request for them to include that in future haha).

by **kennynah** » Mon Sep 08, 2008 11:28 pm

saxo capitals is a pure market maker and as such, they can choose to eat up all of your trades. i dont consider saxo as a pure brokerage whose income is purely from commissions generated from trades, both online and thru phone. in fact, they generate their own bids/asks as oppose to having them directly delivered to from the exchanges; again bcos they are a market maker. market makers can choose to shut down their quotes; in an event like 911 after exchanges begin doing business again.

IB, OptionsXpress, TOS are some of the discount brokers that offer non-market making multiple exchanges bids and asks...in this sense, the retail customers can be assured of better quotes and less slippages.

i use TOS and i have absolutely NO complaints whatsoever about their services or platform. Their platform, i dare say, is by far, the most superior amongst the discount brokers. i have explored and compared that to IB and OptionsXpress.

If you interactive real time streaming of prices, TOS does the job best. In fact, they are so efficient, that when i compare their streaming quotes to what i see on CNBC on TV, most times, TOS data is a split second faster.

Their support staff even response to my email queries on a sunday afternoon(our time) within minutes.

BC : i also think you need to safeguard against that ultimate risk of capital safety. so, indeed should split your accounts up....tos is accredited by all the necessary govt agencies... u can visit them at http://www.thinkorswim.com

i agree that tos platform will seem initially complex but it's only bcos they are packed with very useful applications...analyse, thinkback, journallog, fx, account mgt, beta weighting, etc... sibei solid...is the word...

i say some more abt tos, GR will whack me for touting their services...for which, obviously, i have no vested interest..whatsoever...no such thing as referee's fee..nothing of that sort...just for the record.

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