Go to Jeff Salisbury LWGate Home Page.From: Jrice45515 <Jrice45515@aol.com>
Subject: 'Discounted' Stock Trade Commissions
Date: Fri, 22 May 1998 13:36:31 -0400 (EDT)
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A FAQ appearing at the A. B. Watley, Inc. online brokerage site (www.abwatley.com/faqs.html#2) reads as follows: Question: My broker doesn't charge me for my market orders over 1,000 shares. Why should I switch to you? Answer: Commissionless trading is a myth. You may not be paying a commission, BUT you are paying a mark-up! Buyer beware! This is also the game of the so- called deep discount brokers. How could a broker stay in business without charging a commission? The answer is they DO charge, but not in traditional commission form. A 1/4 point mark-up on 1,000 shares is $250! At A.B. Watley, Inc., we charge you a fair commission and NOT the markup on NASDAQ and listed stocks other brokers do. We know very well that it's your money. Is A. B. Watley saying that my discount broker supplements his discounted commission charge to me by essentally applying a wider bid-ask spread to my trades and pocketing the extra money? Is this why my trades seem to go off a less favorable prices than necessary? If so, is this legal? Thanks for any help. I know you all are busy. - -
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