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From: mazlack@ernie.BERKELEY.EDU (Lawrence J. &)
Newsgroups: net.invest
Subject: Re: Stockbroker selection, discount brokers.
Message-ID: <11135@ucbvax.BERKELEY.EDU>
Date: Tue, 3-Dec-85 16:29:11 EST
Article-I.D.: ucbvax.11135
Posted: Tue Dec  3 16:29:11 1985
Date-Received: Thu, 5-Dec-85 05:30:13 EST
References: <2267@amdahl.UUCP> <11094@ucbvax.BERKELEY.EDU> <7812@ucla-cs.ARPA> <7824@ucla-cs.ARPA>
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Reply-To: mazlack@ernie.UUCP (Lawrence J. Mazlack)
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Organization: University of California, Berkeley
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>The discussion on problems with Schwab brings up a general problem with
>brokers--you should assume that they are all incompetent.  I have had
>substantial difficulties over the years with Dean Witter.  Late/slow buy
>and sell execution.  Buys or sells attributed to other people's accounts,
>slow or nonexistent monthly statements.  Bizarre margin rates.
>Unexplainable "journal entries" of transfers of cash.  Slow crediting of
>interest or dividends to account, etc.

Absolutely.  I trade regularily (about every two weeks) and they regularily
can mess up.  The prime reason I deal mostly with Rose know is that over
about a hundred trades, they haven't messed up yet.  This doesn't mean
that they won't.  One thing that they do that I like is that they tape
all of your conversations.  When a dispute arises, they replay the tape to
you over the telephone (it usually is done the same day the question arises).
Because the dollar difference from one discount broker to the other is not
very large, I would choose on the basis of execution and book work.  (I do
occasionally trade with a "full service" broker - when they provide critical
information; however, 95% of my trading is done with either Rose or 
Quick&Reilly.)

>
>I urge anyone dealing with a broker to examine all transactions closely;

Right on.  I have had all sorts of problems.  The worst against me was
when MLPFS bought 10,000 shares instead of 100, the stock went down, and
then they tried to have me make it good.  After a little discussion,
they agreed to eat it.  I write this off to a broker error that they were
willing to correct - I have no bitch with them as they were willing to fix
their mistake.  However, with Schwab, I never was able to set things right.
(Because of a lot of complaints like mine, Schwab promised the SEC to do
better.)

>shop for best margin rates; take personal deliverly of certificates on
>cash sales, and be very, very careful with orders, credits and debits to
>account.
>
>L. Miller

Absolutely take delivery.  So far this year, there have been 10 broker failures
(according to yesterday's Wall Street Journal).  Any of them can fail, for
example, Bache did.  Even if they don't fail, they can and do loose track
of certificates.
   ...Larry Mazlack