The Motley Fool Discussion Boards

Previous Page

Financial Products & Services / Discount Brokers


Subject:  Re: Hate your broker? Date:  2/3/1999  9:24 AM
Author:  SoundFX Number:  9835 of 50512

Fooltocry wrote:
What are the requirements for the Ideal On-line Broker? Lets be reasonably specific here if possible.

For example:
1. Trade time < 1 minute for market orders.
2. Real-time quotes. Up-time 99% during trading hours.
3. Phone service. Answer < 10 'rings'; connected to live person < 5 minutes.
4. Globally orientated.
5. Commissions .....
6. Extra fees....

Thanks for starting this discussion. Here is my two cents.

I see many posts where the broker was good, and then went south. Why? I think in most cases because they expanded before they had an infrastructure that could support their expanded client base. I think this does more to kill a business than anything - no strategic plan, only a tactical plan.

For me the ideal broker would not accept new clients until it could adequately support them through the proper level of service/support/systems. I think the broker needs to keep a waiting list, and not just accept people until the system utterly fails. The ideal broker has to stand up and say no until it can provide a guaranteed level of service.

I will use an example of my ISP - Mindspring. I joined them a couple of years ago, and after they bought out a company called Pipeline they discovered that what they bought was not quite as advertised. There were inadequate Points-of-Presence (POP) servers, and the infrastructure was not there in many cities. Therefore, if you lived in one of these substandard cities, all you could hope for was to be put on a waiting list until they improved the infrastructure to the point where the service was adequate for the need.

I will add additional requirements as I think of them, but this is my first thought (after my first cup of coffee).

L:et's keep this thread going to try to crystalize the ideal broker.

Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us