How do brokers keep clients from leaving?

Discussion in 'Stocks' started by .sigma, May 29, 2020.

  1. virtusa

    virtusa

    Most people start the wrong way in trying to find out what makes the best or most money.
    They watch what the majority does, or what is mentioned in newspapers.

    They should start by defining what their own abilities are and see what is optimal within their own limitations.

    If you copy the way Jordan started playing basketball and copy his training program and even would wear the same outfits, it is highly probable that you will never play in any professional team. Because Jordan was gifted with the needed requirements, while you are not.

    PS:There are indeed no speculators in the Forbes 500, but there are also no investors in it as Forbes 500 is a list of companies, not investors. So that example was not valid.
     
    #21     May 30, 2020
  2. wrbtrader

    wrbtrader

    Most "older folk" (that you made reference about) most likely will not close their accounts because they're not dependent upon the capital in those accounts.

    Regardless, traders are less likely to close their account in situations like a "black swan event" whereas an investor may cash out as in put their money on the sidelines to wait for a very cheap discount to jump back into whatever it was that they believe while other investors may just ADD to their investment portfolio when they believe a bottom is in.

    The older folks have been through this before (e.g. 2008 - 2010, dot com days, one day market crash)...they've seen it all and they've seen how the markets has reacted in prior Pandemics.

    Thus, if there's any panic / account closures...its not going to be from the older folks.

    wrbtrader
     
    #22     May 30, 2020
  3. deaddog

    deaddog

    .Sigma;

    Are you confusing brokers with financial advisors(FA)? Brokers make their money if you trade, financial advisors get paid on Assets under management. If they are selling mutual funds they get a trailer fee as long as the client holds the fund, if the client goes to cash the FA doesn't get the fee.
     
    #23     May 30, 2020
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  4. Cabin111

    Cabin111

    Places like Schwab and Fidelity charge about $150. exit fee (gotcha). Do you really want to pay that fee?? Other brokers are about the same. Tell you what, you can keep your account here and buy smaller CDs. Are rates are competitive (we won't tell you about the float). You know, since you have been a "valued customer" (really a headache and an number), we are going to offer you this...
     
    #24     May 30, 2020
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  5. ajacobson

    ajacobson

    "Places like Schwab and Fidelity charge about $150. exit fee (gotcha)"

    Commonly the receiving broker will credit the fee back - especially for qualified accounts. Size can also be an issue.
     
    #25     May 30, 2020
  6. Cabin111

    Cabin111

    But, if they send it to a bank...Gotcha!!
     
    #26     May 30, 2020
  7. ajacobson

    ajacobson

    Nope - at Schwab we just credited the incoming.
     
    #27     May 30, 2020
  8. ph1l

    ph1l

    He probably meant the Forbes 400.
    https://www.forbes.com/forbes-400
    The Forbes 400: The Definitive Ranking Of The Wealthiest Americans
     
    #28     May 30, 2020
  9. Cabin111

    Cabin111

    You may be right. I was reading and reading. It seems like Schwab may have a $50. exit fee, but it is hard to read between the lines.

    I did type on Google "exit fees brokers"...I got the below.

    Most brokers have some sort of exit fee in the event that you close out your account. Depending on the broker, it could be as much as $150. This can be an unexpected surprise if you don't remember that the fee exists.
     
    #29     May 30, 2020
  10. ajacobson

    ajacobson

    This is about a decade old as you can tell from the firm names

    WellsTrade: $95
    Bank of America: $75
    TD Ameritrade: $75
    SogoTrade: $75
    E*Trade: $60
    Charles Schwab: $50
    Zecco: $50
    Sharebuilder: $50
    TradeKing: $50
    FirstTrade: $50
    OptionsXpress: $50
    Scottrade: $0
    Fidelity: $0

    Also, watch out for Account Closing fee some brokerages charge. For example, Fidelity as far as I can tell, does not have an ACAT fee, but they’ll charge you with account closing fee of $50 for IRA accounts. There are some brokers who will reimburse ACAT fees when you join them. Best to ask.
     
    #30     May 31, 2020
    .sigma likes this.