Wednesday, August 9, 2017

Brokers, brokers...

Broker A gave me 30 free trades per month for a deposit of $25,000. Several times they told me the trade was executed via email but actually not. Magazine editors, please check this feature instead of the execution 1 micro second faster. Their one-year CD interest rate is virtually zero. Easily you can calculate how many interest you miss for the benefit of 30 free trades per month. I do not trade a lot in this risky market, so it is not for me.

I asked my primary broker the cash incentive to switch these accounts to theirs. He told me none due to my taking advantage of them last time. I asked for proofs and he gave me none in a very nasty tone.

If I switched money after I deposited and received the cash incentive, then I was guilty. I did not recall it. Even if I did, the system was wrong as it should prevent it from happening. I asked his manager to reassign my account to another financial planner as he did not look after my benefits. For the last decade or two, I met him once and talked to him several times on the phone. If he worked on commissions, it could be the easiest money to get from me.

If you have a lot of money in the broker's account in cash (or money market fund), the interest rate is virtually zero. I wonder how much money I lost for doing so. CDs range from 1% to 2% depending on the maturity period. Ladder your CDs so you can have money to move back to the market when the market plunges. 

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