Hi, Bob.

BM> 

BM> FM >One thing to remember with discount brokers is that it's not only
BM> FM >the advice/research that you miss out on. The discount stockbrokers
BM> FM >that I'm aware of will take your order either at a price, or at
BM> FM >market. "Full service" brokers will, in addition to providing
BM> FM >research material, be happy to take your order with a few cents
BM> FM >discretion, ie "buy me XYZ at the best you can do today, but not
BM> FM >over $n.nn" (or equivalent on the sell side). And although we
BM> FM >obviously can't say for certain which way the market's moving, you
BM> FM >do get a feel for it and can sometimes make enough difference to
BM> FM >more than wipe out the difference in brokerage from the
"discount"
BM> FM >brokers. Or, suggest that the price you want to pay (or get, if
BM> FM >selling) just won't make it and let you make up your own mind to go
BM> FM >above (below) that.

BM> You make a good point, Frank.  I probably should not have mentioned
BM> discount brokers in my first msg.  IMO they are really only for the very
BM> experienced investor who knows excatly what he wants to do.

I don't see any problem with mentioning discount brokers, but in the
interests of a "fully informed market" :-) I thought I'd mention that it
may not just be the research that you miss out on. And even the
experienced investor may find that, on average, he gets enough of a
better price to more than cover the higher brokerage.

BM> I personally don't use discount brokers and have dealt with Were for all
BM> my share transactions.  Because of the relationship built up over the
BM> years I always get good allocations of new floats (eg Woolworths) and a

That's another very important point which I forgot to mention.

BM> deluge of first class research.  I also do an annual portfolio review
BM> with my advisor, which costs nothing.  If something interesting comes
BM> along (eg BHP warrants) my advisor will call me to discuss it.  I get
BM> invites to company presentations so I can learn firsthand what a company
BM> is up to - plus meet a couple of the managers.

Yep, I also invite my clients to any in-house presentations in the
sectors their interested in where possible (some are "strictly"
in-house).

BM> In addition, there are extra services like Cash Trusts and fixed
BM> interest advice.  If I want to deposit foreign currency, it is all
BM> sorted out with no fuss.

Yep, ditto with us except for the foreign currency.

BM> Over the years I have received benefits from my broker that outweigh the
BM> money I have given him in brokerage.  I have been fortunate in getting
BM> an advisor whose temperament complements mine.  Plus, I think there is
BM> still a place in business for loyalty (two-sided) and friendship.

Totally agree. And it can be a two way street - some of my clients hear
of things which I haven't, which I can then follow up for them.

Regards, FIM.

 * * If you hit every time, the target's too near.
@EOT:

---