No More Traditional Brokers

Discussion in 'Trading' started by easyguru, Apr 9, 2004.

    No More Traditional Brokers
    ex24 is an all Internet trading system which permits small investors to deal directly with each other rather than through the medium of a broker when they purchase and sell securities. The securities traded are displayed as 1.00, 2.00, etc. The ex24 system permits investors to purchase high quality securities in very small odd lots but at prices which are related to the prices reflected in sales on the open market exchanges, but without the fees and add-ons that would be charged for odd lot purchases on those exchanges. ex24 may participate in trades while maintaining a market in the securities listed on the system.

    What do you think of this ebay like concept.
  2. Great idea, as long as the securities are fully fungible on the regular exchanges. Can you sell short with this operation?
  3. Not fungible, can't short, 99 shares maximum size. Limited stock selection and they can make a market in the stocks.

    "Due to market volatility and high trading volumes, system access and trade execution may be delayed."

    Commissions between 5 cents and 2 dollars per individual share, only on the buy, sells are free.

    Sounds like a great racket for the people running the operation. Here I thought it would be some easy arb money, but I guess they've corned it all.

    Probably good for the buy and hold investor who can't afford 100 shares of stock and doesn't want mutual funds.
  4. Very slick implementation. Must have passed muster by the lawyers.

    This is essentially a copy of what the gambling industry has been doing for years now, bypassing the racetracks and legal bookmakers, by setting up 'exchanges' see for an example.

    Don't know what value this will have for anyone here , as the round trip transaction cost is 1% of the trade value.
  5. taigong


    I wonder who is really on the other side.

    Seems that the spread is wide (4 cents for NT and 8 for JNJ, for example). And there IS a fee for transaction ($.05 for 1 share of NT and $1 for 1 share of JNJ).

    Whoever operates this takes a fat cut.

    A sucker's game, IMO.

  6. Hmmmm, is that a euphemism for 'pick off rights'?
  7. Looks like a typical spreadbet operation
  8. taigong


    Worse--they charge a fee for the privilege...
  9. I like :D

    "We have recently opened a Betfair Market Movers information line, you can reach it by calling 0870 90 80 181.

    What's hot & what's not! Find out which odds are shortening or lengthening. Calls are charged at National rate."

  10. Why even pay attention to a RACKET like this?
    Cheap site that crashed my computer as soon as I accessed it.
    Seems like there's a con man on every corner you turn , nowadays.

    Not much different from the times of Jesse Livermore, I guess.

    #10     Apr 9, 2004