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I was going to post this in the Discount Brokers folder, but I see alooFFool beat me with essentially the same news snippet at post #4240. So I'll throw this up here, as it oughta be good fodder for the radio show.

On the one hand, it's rather humorous ("How dare people make their own investing decisions!"), but on the other, the quoted traditional brokerage exec has a point worth pondering in regard to hyperactive trading.


Merrill Lynch critical of online trading

The vice chairman of the board of Merrill Lynch thinks investors using the Internet would be better off if they listened to a traditional broker. In a speech at this week's PC Expo in New York, John "Lonny" Steffens said, "The average online trader has $31,000 and makes 30 trades a year. That might be fun, but it's not investing," The New York Post reported. He also referred to research which showed between 1991 and 1996 the 20 percent of people who traded the most without the advice of a brokerage earned a net 10 percent. A major market index was up 17 percent overall. Steffens said Merril Lynch will offer online trading services later this year .

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