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No. of Recommendations: 17
Some Thoughts:

1. I would have rather seen BuyandHold do more to cut cost then raise fees. Moving out of New York City, cutting back to one trade window, or reducing the number of stocks they offer. Instead B&H will increase fees and services. I think B&H is being unrealistic.

2. I find B&H marketing very disappointing. Claiming that there is no inactivty fee (From my BuyandHold letter: We have also eliminated the inactivity fee from this plan. This change applies to each of your Pay Per Trade accounts) to be deceptive. Also, they encouraged (sometime with the Transfer Agents help) movin DRIPs into a B&H account. Often this wasn't in the best interest of their customer.

3. I'm having a really tough time understanding where B&H is going? At first they marketed to small investor ("invest for as little as $20", or teach your kids about investing with a custodian account.) Now they seem to be targeting the "active" investor/trader. I really question why a "active" investor/trader would waste their time and money on service that doesn't offer real-time trades.

4. The Good news is that the changes to the IRA's are mild. Would be pretty hard to charge an inactivity fee. Already my contribution for 2001, and I'm fully invested.

5. The new fees are complicated (I've noticed several postings that showed some confusion) and I'm sure there are customers out there who be really surprised when $7 gets debited from their account. Which suggest to me June first won't be the end of complaints and account clousres.

In the end I closed by regular account. I was just using it to stockpile my IRA contribution for 2002. I'm leaving my IRA alone for now.

I'm still very concerned about the business model, and I'm still upset about their claim of "eliminated the inactivity fee"

They should have cut services, not raise fees.

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No. of Recommendations: 5
I agree with reducing overhead but not services. B&H is still fairly cheap for the LTBHer that DCA on a monthly basis with moderate amounts of money.

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No. of Recommendations: 2
"They should have cut services, not raise fees."

We should all drive smaller cars, not search for oil.
We should all turn off the lights at 9:00PM, not build new power plants.
We should all eat once a day, not plow new farmlands.

It's really pretty simple. B&H went into business with a plan. After a time, they discovered the parts of the plan which were viable and profitable, and which parts were not. they made alterations to stay in business. Duh?!?

Would you like to know the net effect of the fee increases? I.e., how many accounts were in place before and then after the fee schedule was enacted? A 10-K is coming to an SEC near you soon. Film at 11:00...

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No. of Recommendations: 2
They key here is moderate amounts of money. Again, this knocks out the average B&H investor.
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No. of Recommendations: 1
I'm confident that B&H will fine tune their procedures to be inclusive for all investors in the future.

Merits no further discussion.

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