Re: low margin

Hi Bob,

I am a discount broker to many clients, and I want to tell about the "other
side of the coin".
Your view of the futures brokerage is very narrow.

Cheap commission encourage at times severe over trading. The barrier of
entry is very low, and a trader does not think twice before jumping in.
The reason:"I'll break even fast"
That at times encourages over trading and leads to losses.

If one is an experienced trader, it's fine to allow him to trade with low
commissions.
However, I find that most people start trading discount just based on the
transaction cost, not the value that a good experienced broker could give
them.

You really have to be a broker for a day, and see the other side, where
people lose money and refuse to pay a little more to save a lot.
That hurts.

Maybe you are one of those guys.

Before you come up with your ingenious theories, have a good cereal and
start thinking.





"bob" <[EMAIL PROTECTED]> wrote in message
news:[EMAIL PROTECTED]
> how could anyone get upset by lower commissions. unless you are a full
> service broker ripping off your clients for the big bucks and the
> competition is cutting into your business?
>
>
> "consuming" <[EMAIL PROTECTED]> wrote in message
> news:[EMAIL PROTECTED]
> > This must END very very fast and as soon as possible, or as soon as
> > lawmakers in Washington come to realize that these operators are
> > transforming a REPUTABLE, extraordinarily DIFICULT and tremendously
> > DEMANDING activity called TRADING into a portable, easy to operate
> > gambling machine. What's your next move? 25 cents R/T's and $10
> > margins?
> >
> > MArgins must be respected and the exchanges should enforce the minima
> > across all FCM's and IB's.
>
>