[Calin]

Have you guys ever watched the commercial for this?

It starts off by saying something like, "I'm afraid that my broker needs a bail out so he starts selling my stock"

Wow really? Because its not illegal to excercise discretion at all. And if you entered into a completely discretionary platform at a major brokerage form you know already they can buy and sell as they see fit for your benefit. You can just take yourself off the platform or how about you probably trusted him before you signed those documents.

People then ask, well how do we know he isn't just generating commission?

Great question, and the answer is that all discretionary platforms that I know of work on a wrap fee style account. Meaning they charge you 1% - 2% of your total account value. Meaning if he trades 100 times in a week you still only get charged as if he didn't trade at all. Your brokers benefit only comes from him growing your money not killing your money.

Simple math. 1% of 1,000,000 is 10,000, but what if he grew your money to 3,000,000 dollars then you are at 30,000. Which one do you think the broker would rather get?


Ok anyhow, enough of my rant. These misleading advertisments are hilarious to me. Complete untrue and people get scared and run to this jokes of services.

[caliro121]

That guy talks with such a stern voice.

[Calin]

Yea he is pretty uninformed. What a Used Car Salesman tactic.

[Frank112916]

Originally Posted by Calin

Yea he is pretty uninformed. What a Used Car Salesman tactic.

Actually I think he's well informed, he's just preying on the stupid.

[caliro121]

He is an actor; chill out.

[Calin]

Originally Posted by Frank112916

Actually I think he's well informed, he's just preying on the stupid.

He isn't informed, you can't just sell a client out of their position for a 'bail' out. Its illegal. Most accounts are non-discretionary. Brokers at major firms can't just sell out, if they do they get fired and possbily thrown in jail even if their discretion benefits the clients.

Even if the client makes a billion dollars from the deal, the broker still fired and legal proceedings are filed against them.

Originally Posted by caliro121

He is an actor; chill out.

This is true. Just bothers me.

[caliro121]

He is talking about selling stock in the firm. For example ETFC.

I can't believe you missed that.

[Calin]

Originally Posted by caliro121

He is talking about selling stock in the firm. For example ETFC.

I can't believe you missed that.

I think we are watching different commercials. But then again you could be right. I'll pay more attention when it comes on again. What I do know is that as long as I have sizable wealth I'll never to an online trading platform. They are great when you have less than 50k or 100k but more than that its silly to be there.

And if you constantly trade yea its really bad.

EDIT

Just watched the commercial, he says "Broker" not "Brokerage Firm" Yea its a technicality or maybe intentional so they have a backdoor to go when someone calls them out on it.

Either way it varies on the interpretation of the commercial.