Author Topic: Stocks  (Read 346168 times)

Online aygart

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: May 2008
  • Posts: 7935
  • Total likes: 2168
  • DansDeals.com Hat Tips 7
    • View Profile
    • Lower Watt Energy Brokers
  • Programs: www.lowerwatt.com
Re: Stocks
« Reply #3600 on: October 10, 2019, 10:16:01 AM »
With Schwab eliminating commissions on online trades of Stocks, Options and ETFs and TD Ameritrade following suit (will E*Trade, Fidelity and others also fall in line?) the cost of trading those products no-longer becomes a deciding factor. What are some other advantages/disadvantages that you have seen with any of the online brokers?

While ETFs have become extremely popular and work well in certain situations, there's still room for more traditional Mutual Funds the availability of funds and ability to trade them without any commissions or loads, still differentiates between the online brokers, though it might be very product specific. Another potential differentiation is the availability of products and features (for example FOREX, Option trading level within IRAs, etc.).

Any other observations?
Now Fidelity joins....

https://www.fidelity.com/why-fidelity/trading
https://www.marketwatch.com/story/fidelity-cuts-fees-to-0-as-it-jumps-on-zero-commission-bandwagon-2019-10-10
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Online aygart

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: May 2008
  • Posts: 7935
  • Total likes: 2168
  • DansDeals.com Hat Tips 7
    • View Profile
    • Lower Watt Energy Brokers
  • Programs: www.lowerwatt.com
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Online ExGingi

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Nov 2015
  • Posts: 6839
  • Total likes: 1284
  • DansDeals.com Hat Tips 8
    • View Profile
  • Location: 770
Re: Stocks
« Reply #3602 on: October 10, 2019, 11:35:53 AM »
Now Fidelity joins....

https://www.fidelity.com/why-fidelity/trading
https://www.marketwatch.com/story/fidelity-cuts-fees-to-0-as-it-jumps-on-zero-commission-bandwagon-2019-10-10

Looks like they took it a step further in getting close to IBKR:

Quote
Get margin rates as low as 5.00%

IMHO Fidelity has a slight leg up over some of the competition with the ability to have a choice of Core Funds other than just sub 0.5% cash.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Online aygart

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: May 2008
  • Posts: 7935
  • Total likes: 2168
  • DansDeals.com Hat Tips 7
    • View Profile
    • Lower Watt Energy Brokers
  • Programs: www.lowerwatt.com
Re: Stocks
« Reply #3603 on: October 10, 2019, 11:48:47 AM »
Looks like they took it a step further in getting close to IBKR:

IMHO Fidelity has a slight leg up over some of the competition with the ability to have a choice of Core Funds other than just sub 0.5% cash.

https://www.barrons.com/articles/schwab-fidelity-equity-commissions-zero-td-ameritrade-etrade-vanguard-brokers-51570656961
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Offline mimb

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Mar 2015
  • Posts: 444
  • Total likes: 9
  • DansDeals.com Hat Tips 0
    • View Profile
  • Programs: AA, United, Delta, AMEX, CHASE UR, SPG
Re: Stocks
« Reply #3604 on: November 15, 2019, 11:48:24 AM »
any thoughts on Ford? Has $20Bn in cash but market cap is only $40Bn? also has a nice 6.7% dividend yield

Online ExGingi

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Nov 2015
  • Posts: 6839
  • Total likes: 1284
  • DansDeals.com Hat Tips 8
    • View Profile
  • Location: 770
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline Ephraimh

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Oct 2013
  • Posts: 1494
  • Total likes: 50
  • DansDeals.com Hat Tips 2
    • View Profile
  • Location: nyc
Re: Stocks
« Reply #3606 on: November 21, 2019, 09:37:25 AM »
https://www.bloomberg.com/news/articles/2019-11-21/charles-schwab-in-talks-to-buy-td-ameritrade-cnbc

Wow
Iím being swallowed now for the 2nd time in 2 years.. Scottrade > TD Ameritrade > Charles Schwab!

Itís mind boggling how Robinhood singlehandedly deflated and turned an entire industry into thin air.

You canít help yourself but think what other industry is sitting comfortably raking in cash every quarter, but the business model as a whole is fundamentally just inflated air fancied up as a business.

Offline Yitzshpitz

  • Dansdeals Platinum Elite + Lifetime Silver Elite
  • *****
  • Join Date: Oct 2014
  • Posts: 606
  • Total likes: 31
  • DansDeals.com Hat Tips 0
    • View Profile
Re: Stocks
« Reply #3607 on: November 21, 2019, 09:55:06 AM »
Iím being swallowed now for the 2nd time in 2 years.. Scottrade > TD Ameritrade > Charles Schwab!

Itís mind boggling how Robinhood singlehandedly deflated and turned an entire industry into thin air.

You canít help yourself but think what other industry is sitting comfortably raking in cash every quarter, but the business model as a whole is fundamentally just inflated air fancied up as a business.

Its true. I can think of a few- insurance companies , pharmaceutical and drug industry, personal injury lawyers

Online ExGingi

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Nov 2015
  • Posts: 6839
  • Total likes: 1284
  • DansDeals.com Hat Tips 8
    • View Profile
  • Location: 770
Re: Stocks
« Reply #3608 on: November 21, 2019, 01:52:02 PM »
Iím being swallowed now for the 2nd time in 2 years.. Scottrade > TD Ameritrade > Charles Schwab!

Itís mind boggling how Robinhood singlehandedly deflated and turned an entire industry into thin air.

You canít help yourself but think what other industry is sitting comfortably raking in cash every quarter, but the business model as a whole is fundamentally just inflated air fancied up as a business.

I don't think Robinhood singlehandedly did this. At various points Schwab, E*Trade, Interactive Brokers had a major impact. Think or Swim was a significant trading platform and the ability to actually negotiate your own rates and fees with them (I started doing that before they were swallowed by TD Ameritrade and never followed up).

Scottrade to TD Ameritrade is nowhere as significant as TD Ameritrade to Schwab. TD Ameritrade is HUGE with lots of advisory business. It is also owned by TD which is a Canadian company rather than the rest which are mostly US owned.

You can't write down businesses as "inflated air fancied up as a business". Technology is a huge game changer and reduces actual costs. A legacy business has those costs, and integrating and upgrading technology is a huge commitment that requires an investment.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline Ephraimh

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Oct 2013
  • Posts: 1494
  • Total likes: 50
  • DansDeals.com Hat Tips 2
    • View Profile
  • Location: nyc
Re: Stocks
« Reply #3609 on: November 21, 2019, 06:50:36 PM »
I don't think Robinhood singlehandedly did this. At various points Schwab, E*Trade, Interactive Brokers had a major impact. Think or Swim was a significant trading platform and the ability to actually negotiate your own rates and fees with them (I started doing that before they were swallowed by TD Ameritrade and never followed up).

Scottrade to TD Ameritrade is nowhere as significant as TD Ameritrade to Schwab. TD Ameritrade is HUGE with lots of advisory business. It is also owned by TD which is a Canadian company rather than the rest which are mostly US owned.

You can't write down businesses as "inflated air fancied up as a business". Technology is a huge game changer and reduces actual costs. A legacy business has those costs, and integrating and upgrading technology is a huge commitment that requires an investment.
Legacy trading platforms dropping commission fees had nothing to do with technology..  instead it has everything to do with old fashioned being outsmarted by your competition.

Robinhood singlehandedly pioneered an idea of commission free trading, and the big boys had to follow, thereby killing the commission fees side of their business model.

Charging $6.95 for a service that can evidently be done for $0, was turns out an inflated air balloon fancied up as a business.

Online ExGingi

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Nov 2015
  • Posts: 6839
  • Total likes: 1284
  • DansDeals.com Hat Tips 8
    • View Profile
  • Location: 770
Re: Stocks
« Reply #3610 on: November 21, 2019, 06:59:24 PM »
Legacy trading platforms dropping commission fees had nothing to do with technology..  instead it has everything to do with old fashioned being outsmarted by your competition.

Robinhood singlehandedly pioneered an idea of commission free trading, and the big boys had to follow, thereby killing the commission fees side of their business model.

Charging $6.95 for a service that can evidently be done for $0, was turns out an inflated air balloon fancied up as a business.

Schwab has been cutting commissions for years before Robinhood came along, and Interactive Brokers was charging very low commissions too. Robinhood just came along and helped drive the commissions to $0.

If you read the Bloomberg article, you will see that ever before cutting commissions, Schwab's commission income represented only 7% of their total income. For Ameritrade it is much higher.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline Ephraimh

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Oct 2013
  • Posts: 1494
  • Total likes: 50
  • DansDeals.com Hat Tips 2
    • View Profile
  • Location: nyc
Stocks
« Reply #3611 on: November 21, 2019, 10:25:33 PM »
Schwab has been cutting commissions for years before Robinhood came along, and Interactive Brokers was charging very low commissions too. Robinhood just came along and helped drive the commissions to $0.
All true, but thereís a reason the two biggest players merged today and not years ago.. charging $0 per trade even coming from $1, is a way bigger jump than reducing the price from $7.95 to $1.00...  the concept of FREE TRADES disrupted the industry and broke their backs hence pushing them to merge today to focus full time on asset management/advisory etc. 

The commission fee business is dead and Robinhood singlehandedly killed it.

If you read the Bloomberg article, you will see that ever before cutting commissions, Schwab's commission income represented only 7% of their total income. For Ameritrade it is much higher.
Yes at Ameritrade itís 35% but regardless the percentage, that side of the business is dead, and again Robinhood killed it.

Ok Iím done, Robinhood doesnít pay me!

Online aygart

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: May 2008
  • Posts: 7935
  • Total likes: 2168
  • DansDeals.com Hat Tips 7
    • View Profile
    • Lower Watt Energy Brokers
  • Programs: www.lowerwatt.com
Re: Stocks
« Reply #3612 on: November 22, 2019, 12:42:35 PM »
Charging $6.95 for a service that can evidently be done for $0, was turns out an inflated air balloon fancied up as a business.
It can't and isn't being done for free by anyone. Now figure out how you are paying them.
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Offline mimb

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Mar 2015
  • Posts: 444
  • Total likes: 9
  • DansDeals.com Hat Tips 0
    • View Profile
  • Programs: AA, United, Delta, AMEX, CHASE UR, SPG
Re: Stocks
« Reply #3613 on: November 22, 2019, 12:52:22 PM »
any thoughts on Ford? Has $20Bn in cash but market cap is only $40Bn? also has a nice 6.7% dividend yield

anyone?

Online yuneeq

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jan 2013
  • Posts: 6088
  • Total likes: 380
  • DansDeals.com Hat Tips 10
  • Gender: Male
    • View Profile
  • Location: NJ
Re: Stocks
« Reply #3614 on: November 22, 2019, 01:13:36 PM »
Legacy trading platforms dropping commission fees had nothing to do with technology..  instead it has everything to do with old fashioned being outsmarted by your competition.

Robinhood singlehandedly pioneered an idea of commission free trading, and the big boys had to follow, thereby killing the commission fees side of their business model.

Charging $6.95 for a service that can evidently be done for $0, was turns out an inflated air balloon fancied up as a business.

Zecco had free trades in 2006.