Sometimes, useful lessons can be drawn from otherwise inane posts. Take the time, if you would, to read someone’s whine (Post # 34058) about how he was treated at IB with regard to a bond position held there and then ask yourself wherein the fault really lies. The individual was holding 70 bonds, but he missed out on being selected for redemption on the issue, whereas a buddy who held the same bonds at E*Trade was selected. So let’s review the facts. To have bought those 70 through E*Trade would have cost $70. To buy them through IB cost a mere $10, an apparent savings of $60. But to have missed out on being selected for the auction cost him far more than that. In other words, “Penny wise, pound foolish.” LESSON: If low-cost execution is what matters most to you, then don’t pay a penny more than you have to. But if customer service is what matters to you, and you know in advance (as he should have from reading the reviews on the broker or from asking around) that customer service wasn’t that a particular broker’s strong point, then he shouldn’t have been surprised when he got exactly what he paid for. Sometimes, it's possible to take cost shortcuts and to get away with them. But when customer service matters, then be prepared to paid for for it. "Cheap = Grief", as that individual found out.
Why is it you never reply to a message inline in the original thread where it belongs? You have some kind of deep need to be seen as the originator of information, even when you are responding. It's anti-social. It's immature. And finally, it's annoying, to everyone, not just to me.Second, you don't learn about shortcomings of a broker until you take risk and use that broker. There is no a priori basis for understanding that Interactive Brokers commits gross abuses of its fudiciary responsibilities unless you make yourself an Interactive Broker customer. The tooth fairy doesn't appear on your shoulder to announce such wisdom in advance. I'm sure the tooth fairy does appear on your shoulder, because after all you are very special and not subject to normal laws of physics and human learning. But that's just you. Those of us who are human have to take risks, gain real experience, and adjust our behavior to that experience.I certainly never selected IB for anything based on a commission. The real price you pay for a bond is hidden in the spread and the price of the bond itself. I don't believe the amount of the bond commission amounts to anything. I will going forward certainly move bonds I buy on IB over to ETRADE. The reason to use IB in the first place is because they have good to cancel limit orders for bonds implemented, and I value my time a lot more than I value a commission. Unfortunately, the rule appears to be that "saving my time at time of trade = wasting my time later" and that is very unfortunate.
P.S., Your earlier comment was "I can get done any corporate actions that need doing at IB, just as I can get them done at E*Trade." In this thread, you switch like a chameleon and this becomes "But if customer service is what matters to you, and you know in advance (as he should have from reading the reviews on the broker or from asking around) that customer service wasn’t that a particular broker’s strong point, then he shouldn’t have been surprised when he got exactly what he paid for."So which is it, is IB equal in customer service to ETRADE, which it was when you needed it to be in the earlier thread in order to take a cheap shot at me? Or is IB worse in customer service to ETRADE, which is what you changed it to when you needed the facts that way in order to take a cheap shot at me in a new thread?Oh, I know, it's both, whichever you need it to be whenever you need to do whatever you feel like doing. :) Thanks for the fact sharing.
in this case i think it would be prudent to have a little pathos for persisentone because you do not know all of the variables. yes the mantra of i want the cheapest possible commissions is something i hear all the time from retail folks. and there will always be that trade off you outlined between quality service vs. what you pay for a given trade. but the exact circumstances for every individual situation can be different and there are always exceptions. for instance i know someone who has been in this game for nearly two decades. he has a 7 figure account and only one broker, IB. this allows him to maximize his equity/potential leverage. he has been paying under 100 basis point for his margin lending rate now for over 3 years. you can not even get that at the professional trading level or even prop. he has over 1000 individual corp bonds alone. so again here would be an exception to the rule. i think the most important aspect of a board like this is we continue to share ideas and experiences. there is really no where to go on the internet and find quality message threads on individual bonds like here so hopefully folks will continue to share their experiences and down play the little conflicts; bad or good. i will not judge either way. i just want to make money.
With respect to brokerages, my take is that you're always making a tradeoff whatever broker you choose. Being able to write limit orders is certainly an important advantage IB has over its competitors; had I known about that feature, I might have chosen to open up an account with IB over Etrade. Etrade, however, has generally done well by me.Going back to River Rock, persistentone, what do you believe happened? That River Rock showed favoritism to Etrade and the bigger brokers over smaller shops like IB?
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