When IB goes public, say bye bye to low rates

Discussion in 'Retail Brokers' started by myminitrading, Apr 14, 2007.

  1. Just wait it wont be long and they will start to raise commissions, guaranteed, just look at the exchanges that went public, they are charging more for exchange fees, commissions next.
     
  2. yeah your absolutly right .. fukin 40 bucks a months to the thieves at the globex now , and you know the greed bastards are going want more and more
     
  3. Thats what happens when companies go public, the winners are investment banks, company insiders.

    The losers are the general public, because their prices are now guaranteed to rise.

    The only way to combat this is to buy the friggin companies stock on the open market.

    Just think if you bought the CME when it went public, pretty nice return so far, sure could off set your higher fees they charge, thats one way to get even.
     
  4. If they raise fees, I'll say bye bye to them. I'm sure there are other brokers who'd welcome my $300K/year in commissions.

    As far as the exchanges raising fees, that's partly a function of government sitting on their asses allowing all these mergers to create monopolies. There was a time when many mergers were not allowed due to anti-trust rules. Nowadays, it seems *everything* is approved. As if the government is encouraging these greedy hogs to raise prices.
     
  5. If they were going to raise fees they'd have done it BEFORE the IPO to jack up their margins and get a higher IPO price.
     
  6. They are going to have to meet estimates set by wallstreet clowns now, mark my words they will raise rates.
     
  7. 2ticks

    2ticks

    No. If they raise rates prior to IPO then they have to publically explain account attrition and/or deteriorating client satisfaction. After the IPO is the correct timing for such a move; they might need the extra income to pay the underwriting syndicate. :eek:
     
  8. Who would trade this penny tick garbage at higher rates?
     
  9. The biggest difference between the exchanges and the brokers is the level of competition.

    If IB or any other company can raise fees and improve their overall revenues while maintaining growth then they are likely to do so if the change fits their competitive position. But the competition for brokerages is at a very different level to that for the exchanges.

    So, I would ask the question: can IB raise commissions or fees to raise revenue/profit per transaction and also grow the business? If they can then they quite probably would and the internal actors would benefit more by doing it before an IPO than afterwards. But do you think that's a good move for a company positioned as a highly automated low rate broker?
     
  10. Only the new fools with their $5K accts and pot 'o gold at the end of the rainbow dreams.

     
    #10     Apr 14, 2007