The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Bonds & Fixed Income Investments

URL:  http://boards.fool.com/bill-much-thanks-for-providing-details-of-your-30404013.aspx

Subject:  Re: Schwab for Bonds Date:  11/28/2012  8:12 PM
Author:  trader2012 Number:  34533 of 35367

Bill,

Much thanks for providing details of your own experiences with Schwab. That helps others make a more informed decision than my admitted one-sided, very specific viewpoint.

I like Schwab as a company a lot. They are a decent, reputable, squeaky-clean firm (in terms of how they fare in SEC audits) that doesn't front-run their customers. But their eminent and honorable founder, Chuck, doesn't like bonds, and --all internal mission statements to the contrary about intending to provide fixed-income products to their clients-- they fail to match what can be found elsewhere. Bonds just aren't their thing. Never have been; never will be. This isn't to say that I won't do a bond trade there on the rare occasion they're offering the best price. But I really set up the account so I could rotate some money back into mutual funds, an asset-class I haven't had anything to do with for a dozen years now.

As for stocks, I'd never execute them them, either, not when I have direct-access through IB at half-cent per share, and my margin rate is 1.66% as opposed to Schwab's 8.50%. But as a mutual-fund supermarket, they are competitive with their peers and, back in the day, I made good money using them as my broker.

Charlie
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us