Hi Folks,Are any of you out there using E*Trade for both brokerage and banking services? If so, I'd be interested in hearing about first hand experiences on:- Execution (particularly on some of the low dosage and hairy beast types)- Banking- Integration between banking and brokerage from a consumer perspectiveIf you don't feel comfortable posting to the board please feel free to email me directly. I'm curious to hear what Fools have to say.Best,Nate
Nate Not sure what you are looking forAny time you sell, you can buy more stock in the same account with the proceeds, but not move the sale price cash value out of the account to another account until the stock deal clears the brokerages. (3-5 days, guess longer on pinks and low volume stocks that are entered manually into the system)Execution? Normally not a problem, but if you are holding a real low volume stock and you look at the stocks normal daily volume and it is 200 shares and you have accumulated 1000, unless some good news comes across the wires ..... you are bidding your own price down, and if nobody wants it ...... you aint selling no matter how many time you push the button.I will never forget my first online account during the "bubble" (back when I needed a comb). I was watching some pig stock that I got a "hot tip on" weeks before in an Email. It had been down since I purchased it (say it aint so :)I was on a message board for the stock. There were maybe two other people who had posted that day. The stock was up a couple cents on a days volume of maybe 1200 shares, and it was a couple min. before the market closed.I pulled up the straps on my farm overalls, kicked the manure off my boots and stuck a fresh piece off hay between my teeth .... I was about to "post on a stock message board for the first time" ....N'didnt wanna look like no "Rube"So I type in"Great, we will finally end the day green today !"A response gets typed back to me ...."Wanna Bet?""Watch this"Next thing I know ..... there goes my stock symbol on the ticker with a red arrow attached and a 50 share order at $0.01 under the open price.Typing starts again"Ha ....Ha ....Ha....Ha....Ha"I learned a whole bunch about prices, volume, pinks, manipulation ..... and how stupid a "Rube" could feel.Bears:)
Nate,Check out BoA's deal as well. They've introduced free trading for large "Premier" accounts when the bank and brokerage functions are linked.I've got it now -- the trading is not nearly as easy user-friendly as Ameritrade, for example, but easy enough. And the customer support is excellent. Quick email responses from reps who really know what they're talking about.Plus, if you get a Premier account you'll be given a special account representative who can get you fat no-early-withdrawal-penalty-CD rates for any cash you are holding on the side.RichP.S. No, I don't own any BoA stock, but perhaps I should look into that.
Nate,I use E-Trade for brokerage, but not banking at this time. I did place an electronic, limit, AON order for CDCUF (Controladora, which, as you know, is a very low dose pinksheet stock) back in November. If I can believe the charts from Etrade, the average volume on this is about 1,350 shares, which means there are many many days when no trades occur at all. My order for 1000 shares executed without a problem, except that I had to wait several days presumably until a seller was willing at my limit price (which was $2.07).Other than the several day wait for a seller, the sale was handled exactly like any of the hundreds of electronic trades I have experienced with E-Trade, and the commission was my usual $7.99Hope that's helpful.Hal
Hi Folks,Thanks for the posts. I must have been in a hurry last Friday, because as I read my message now it wasn't entirely clear ;). Luckily Hal and Bears managed to answer most of my questions.On the brokerage side I was mostly curious to see how E*Trade would do executing "F" and "Y" pink sheet foreign companies. Many brokers claim to do this, but in practice I have found that some are better than others. Part of this could be volume, but I let one broker have weeks to execute a trade at an above market limit and it sat there. The fill in CDCUF leads me to believe E*Trade will do reasonably well in this regard.The other aspect I am curious about are the links between the banking and brokerage side. If you have idle cash (ie. not tied up waiting for a transaction to settle) how quickly can money be moved to and from higher-yield savings to checking and/or brokerage? I was fairly impressed by E*Trade's offering as far as overall fees for banking and brokerage at different asset levels. I'm mostly looking to hear if the experience is as good in real life as it appears on paper. Thanks for the info so far!Best,Nate
NateI am an E*Trade customer, and have found no real problems using them. I have multiple accounts, all linked to my master account, and can freely move money between the accounts. (I have accounts for my kids, as well as Roth, traditional, beneficiary IRAs, etc.)Earlier this year, I opened a money market account. The currrent rate is 4.93%, a little above 5.03% APR. I think that's pretty decent for funds awaiting deployment. It is easy to move money from the MM to one of the other accounts and back.The only thing I don't like is that funds don't get swept automatically. I used to have a Merril Lynch account that would automatically sweep any idle cash in any account (non-IRA, of course) into the MM. At E*Trade, I have to do this manually.Typically, I purchase a security, then see what my negative balance is in the account. From there, I transfer MM funds to coverage the shortage. Intuitively, you would think you should deposit the money in the brokerage acccount, and then make the purchase, so as not to incur margin charges. That's not the case. I've never been charged a cent.When I sell a stock, I immediately sweep the funds into the money market account (once it's executed, of course.) I have never had to wait 3-5 days for the transaction to clear. I don't know if the sweep occurs, but I don't get credit for interest accrual purposes or not, the the money is in the MM, so I don't have to worry about it.I find it pretty convenient. The only question I have is how the poster a few messages upstream gets $7.99 for a trade. I pay $9.99!Oh, yeah, one more thing. I've got a decent sized account, but not one you'd call bodacious. I can't retire on it. I got a call a person from E*Trade one day, offering to help me if I ever needed anything. As it turned out, I was in the process of wanting to transfer some funds from external sources to E*Trade, including benficiary IRAs from multiple institutions.He was (is in the process of being)able to help me out considerably. That's a nice perk... I now have his direct phone number, and he even gave me his mobile number in case I needed anything.At this point, I would not have any reason to leave E*Trade. (I came to E*Trade after I got tired of Merill Lynch's fees, rote advice, high sales charges, etc. I left them in the late 90s.)Hope this helps! Now, about that $7.99 trade fee...Cheers!
BrewDood,Thanks a bunch. That was quite helpful!Best,Nate
Nate (and BrewDood),A bit more info re ETrade accts. I'm the guy with the $7.99 commissions. The reason for this is that I used to be a HarrisDirect client, and when they were bought by ETrade about a year ago, all Harris customers with accounts of $50,000 or more were given a 7.99 commission rate for one year. A month ago, they announced that former Harris customers would continue to get the 7.99 rate for another year (ie through the end of 2007).As far as cash handling for money not invested at the moment, ETrade offers JPMorgan Munincipal Money Market Fund as one of several options, and on request will treat it the same way as a "sweep" fund. I do this, and all unused funds are automatically swept into the Money Market fund. When I make a purchase, the cash is automatically taken from the Money Market fund, and after a sale clears that incoming cash is put into the MM fund. I never need to request or do anything to make this occur, and I'm never charged a margin fee or any other fees for this "sweep" type service. It's not totally clear how fast the sweep occurs, but on reviewing my "transaction" history, I note a number of these transfers to and from the fund have occurred within one day. Sometimes it's less clear when the transfers occur, because there may be dividends incoming and stock sales and purchases clearing within a few days, and these appear to be balanced out, and then the MM fund transfer occurs.The MM fund currently pays a non taxable rate of about 2.8-2.9% which is equivalent to about 4.4% taxable rate, and it's paid monthly directly into the brokerage cash account (which then goes back into the MM fund.)Hope this helps.Hal
I like Etrade generally. Transfering money between brokerage and checking is easy. But going from small business to personel checking is difficult (SS in personal and tax ID# in small business).They also have a relative paucity of mutual funds.I also consider the security card an absolute essential. Wouldn't do onli8ne trading without one.
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