I've been reading so many negative posts about B&H (I understand why several people are upset) and their new fee structure over the past few days, I felt compelled to inform people that B&H is still a perfect fit for my investing and I'm sure several other investors. I'm no cheerleader, but I still think right now, B&H is the best place for me.I usually invest between $400-$800 per month. The new fee structure will actually have an interesting advantage for me -- diversification. I had been buying one stock purchase per month under the old system. Since I will be charged $6.99 regardless of whether I make one trade or two, I will probably split my monthly buy between two stocks rather than one. At less than $3.50 a trade, I still think B&H is the best deal for me and my current investing style. I would imagine that there are quite a few people in the same boat, but it seems that the disgruntled customers are the most vocal.It still remains to be seen whether this new fee structure will help to make B&H profitable, but until I can find a better deal (I'm not a big fan of Sharebuilder) I'm going to stick with them.- Sparky
You are one of the few that is investing that kind of bread. Look at my total account base, including 401k, then I am definitely in that range. However, my taxable investment is only $100, so at 7%, I can't win.With mu custodial, well, you know the deal.
Sparky wrote:I usually invest between $400-$800 per month. The new fee structure will actually have an interesting advantage for me -- diversification. I had been buying one stock purchase per month under the old system. Since I will be charged $6.99 regardless of whether I make one trade or two, I will probably split my monthly buy between two stocks rather than one. At less than $3.50 a trade, I still think B&H is the best deal for me and my current investing style. I would imagine that there are quite a few people in the same boat, but it seems that the disgruntled customers are the most vocal.My low and high range per month right are not below yours, and BUYandHOLD would still be a good deal for me too, if they don't go belly up.As far as the diversification--that ain't always a good thing. I thought that might be a downside to fnFolio--with all that stuff, it might be tempting to diversify.CowDad
Sparky73 -- Amen.Bottom line, if anyone is unhappy with the new price structure -- leave buyandhold. They don't want your business. Most firms don't want small accounts. It's an annoyance and is unprofitable. This is just the realities of Wall Street. If you think that someone has a better product, then go with it.Bitching about it isn't going to solve anything. Find a solution that will make you happy and move on.
Your posts are awful cocky from a busuiness standpoint for this company. I can assure you--They want all of these accounts. Sure--If an account is empty--they don't want it. But If it has a small amount of money in it they sure as hell do want it. Look--the average account size there is very small by industry standards. The total assets of accounts under their management is smaller than some individual accounts I have seen. Funded-albeit small--accounts are their bread & butter. They are counting on these becoming medium and large accound as time goes on, due to regular contributions and the buy and hold philosophy. Unlike a lot of firms their buy/sell ratio is very high--something like 14 buys for every sale. This means people there are really buying and holding. And another reason small accounts matter to them--their funding. How often have you seen them mention that they have 200M accounts. It is definitely true that a vast majority of these accounts have a small amount of holdings, but that doesnt stop the company from using them as an example of their growth rate publically and privately to their investors. I'll tell you for certain--and I don't know what you consider a large amount of money, but if all of their clients with less than 3000 left the company, it would be in dire straights.
I usually invest between $400-$800 per month.Lucky you....
CowDad: BUYandHOLD would still be a good deal for me too, if they don't go belly up.I think that you hit the nail on the head. B&H may still work for a minority (the "profitable" ones) of the account holders in terms of fees, but the key is the future of the company for those who stay. How long until the fee structure changes again? How will B&H handle all of the inevitable account closings that will occur in the next 3 weeks (with the most in the last week)? How long will be the lead time the next go-round to close/transfer accounts if/when the fee structure changes? Will B&H stay in business? How easy do you think it will be for B&H to handle transfers and closing accounts if it does go out of business? What other brokerage firm would even want to buy B&H if the customers are so unprofitable? What are the odds that those who are saying, "Take your business elsewhere if it doesn't work for you" (and I do agree with them here), will be taking their business elsewhere because B&H will no longer work for them in the near future? I don't DRP and make only a few trades per year, but even if it did make sense in terms of trading costs on paper, I'd still be closing or transferring my account. I wouldn't want to deal with a broker that is in jeopardy of staying in business.On a side note, why would anyone who DRPs (or purchases) one equity 1x per month at any price, 1) DRP or buy the same stock 2x a month, or 2) make another equity purchase each month. Will you be getting your extra $3-$4 worth by 1) buying a stock which wasn't deemed worthy of purchase last month, or 2)splitting your DRP?
Bitching about it isn't going to solve anything. Find a solution that will make you happy and move on. advalorem3,Bitching may or may not solve anything but for all the praise I have reaped up on B&H (most if not all outside this board) in the past I feel like doing some venting/bitching or whatever you want to call it.I will be looking for "my solution" (may even read about it on THIS board) and move on but I like you will continue to post my mind until I move on.Thanks,Dripfool2
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |