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SWS Group, Inc. Message Board

  • SSS150 SSS150 Apr 27, 1999 5:30 PM Flag

    Zavaidoc.......Free trades from MDB?

    Sorry, I cant see the point.

    <<<<<<By offering FREE TRADES. Yes, SWS can afford that.
    Their MM/clearing business is growing at an astonishing
    pace and it provides the necessary cash flow. SWS do
    all the clearing for MDB, so when MDB business grows,
    so does their MM/clearing division.

    For SWS( MDB) to make a trade cost money ;maybe
    the cost is $2,$5 or $8 for a trade. If we go to give
    the service free, who go to pay the cost of each

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Sorry didn't know I was being emotional but then
      maybe I am not as sensitive as you.As far as making
      your point I hardly think so. NITE's performance will
      continue to be outstanding based upon the fundamentals.
      That translates into to increased earnings which will
      drive the stock price higher. This in turn will
      increase business for SWS and their clearing business.As
      far as the promotion of My Discount Broker I would
      agree but it seems from their business plan they are
      creating the infrastructure to give better service. The
      knock on the OLB business is the lousy execution. If
      SWS can give excellent service and execution then
      "katie barr the door" Then a first rate promotion is in
      order.So Key why don't you go take a walk on Mathers beach
      or get yourself a cool one on Duvall St. Believe me
      my dollars care about how I feel. Just a difference
      of opinion.

    • Give me your honest opinion on two other stocks:
      See what you think of ADV and ABFS and tell me what
      you think......good pe's book net

      Looks like accumulation going on.


    • mean they pull in all the bid-ask spreads on
      every order. The market making is where all the bucks
      will roll in. I have a question, though ... is it
      legal to offer "free" trades. It seems there has to be
      some red-tape barrier to offering trades for free;
      otherwise, what is the destiny of AMTD, EGRP, and every
      other OLB. I don't accept that they are just going to
      get run over. Barring any restrictions, I see
      commissions dying off. There could be problems, however, if
      bid-ask spreads are increased to "meet" profit quotas. We
      need to have an intelligent discussion on what free
      trades really mean. If SWS spearheads this, it will be a
      GIANT sucking sound and we will be holding the fastest
      growth company in the sector. Is SWS really at the head
      of the pack?

      • 2 Replies to JustTheFactz
      • brokerages right now. Some require a $250,000 account balance and some require a $500,000 account balance.

      • I do not believe there are any regulations
        against offering trading services for free. Some firms
        have offered flat fee accounts for some time
        many dollars per year or month regardless of the
        amount of trades, although I think they all have limits
        on how many trades can be made.

        Anyway, I
        don't know of any restriction to completely free trades
        and don't believe there are any. Also, SWS has not
        indicated that they are going to do this. I'm just
        discussing what I'd like to see. When someone does introduce
        it I just hope I am an owner of the first company to
        offer it. Here's to hoping it is either SWS, NDB, or
        TD. I think it would be most advantagous to SWS to do

    • I agree with Zav, free market orders would be

      SWS would still make money because they
      would be executing the trades and making money off of
      spreads. I'm not suggesting to make limit orders free

      I have thought that the time would come when market
      orders are free for some time now, recently industry
      people have also been saying that it will happen. Even
      firms that do not perform MM can make money because
      MM's pay brokerages to channel trades their

      If MDB came first to market with free market orders
      their account base and volume would explode. This would
      cause their MM activity to explode right along with it,
      and that is where the increased profit would come
      from. Besides that, they could charge per access fees
      on the trading site for things like

      It will happen within the next five years and when
      it does I will 1)open an account with whoever does
      it 2)invest in whoever does it.

      • 2 Replies to key_westt2
      • SWS doesn't MM in all the stocks.

        example, Somebody makes a trade on a stock that SWS
        doesn't handle, then it is passed on to another

        My opinion here is that somebody might buy them

        1) NITE has a stock repurchase plan but haven't
        bought any back yet. We all know that the half of the
        market cap is based on this one stock. I don't know if
        NITE would want to get in the OLB because of their
        other shareholders(OLB). The might be interested in the
        MM business because that is what they do.
        owns a small part of the ECN Arcipelago with EGRP and
        GOLDMAN and others. NITE owns a 14 % in ECN BRUT. Other
        businesses of SWS could be sold off to interested

        2)GOLDMAN- needs an OLB and will have fistfuls of dollars
        after their IPO
        3)MERRELL- needs an
        4)BANKS---want to get knee deep in investments
        IPO already states that it wants to look for

        We all on this board realize that SWS is
        undervauled. Don't think that the BIG BOYS don't know this

        First message since earnings. Boy that was a nice
        number HUH?

        Take Care and Happy


      • $12 WHO CARES!