Discussion in 'Options' started by AmbushHillbilly, Sep 20, 2006.
thinkorswim merging with InvesTools (announced yesterday).
cause for concern?
I have major concerns. The MarketWatch article says that it is a buy-out, not a merger. If a buy-out, tos will lose control to Investools. Personally, I despise Investools and have had some friends burned by them. They seem to be one of the hotel seminar, blow through town, selling high dollar seminars to people who have never traded...... kind of a place. I am cautionously optimistic. But I am also looking for a new broker.
Spoke with Joel Blom at ToS.
After chatting with him, I feel confident that nothing will change on the brokerage side. This just gives their marketing a boost by bringing in more clients and offering more education services.
the founders of ToS still have a big stake in the combined companies and have a strong hand over the brokerage side.
Personally I feel confident the great service and tools will continue..
So there is more money in selling seminars than brokerage?
With what Investools charges, I would venture to say yes.
And given Investools net profit last year, i would also say yes
TOS is private company, no?
Maybe the owners wanted to cash out a bit and getting this investools public stock is way to do so (and avoid the costs of an IPO, compliance etc), just walk away with public shares?
I was a Investools student and I am a TOS client.
Investools used to link to Option Express and Cyber Traders. Most Investools students use these two brokers . I am not sure what kind of money Investools is making out of the links. Most of the students will now become TOS clients because of the merge. Investools now have its own broker and make money out of every trade its students would be making!!!
Investools is very good in marketing and sales. They come up with new products and services all the time. The learning is endless!!! They always say: you need more education.
TOS is quit poor in marketing. TOS did next to nothing in marketing other than their free seminars and words or mouth. TOS will get a lot of new clients from Investools students.
The merge is good for both companies.
but is it good for student? will TOS freebie go away, will investool seminar came down in price?
My background is institutional trading, and I had been impressed with what I have learned about SinkorSwim. Though I was thinking of opening an account, this announcement give's me serious pause.
I looked over ITool's website and was not particularly impressed that they are offering anything other than what can be found for free or at small cost. Posters have pointed out some good short-term reasons for TS and ITool to merge, but I don't see how it can do anything but hurt ThinkorSwim's prospects with large private or institutional clients. I certainly hope I am wrong, since the folks at TS seemed like they were on to a good business model.
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