Comments on: This and That # 102 http://www.canadiancapitalist.com/this-and-that-102/ Helping you invest and prosper Sat, 11 Feb 2012 18:51:59 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Sometimes One Link is All It Takes | Working Hard On The Internet http://www.canadiancapitalist.com/this-and-that-102/#comment-145214 Sometimes One Link is All It Takes | Working Hard On The Internet Tue, 29 Jul 2008 11:18:27 +0000 http://www.canadiancapitalist.com/?p=1024#comment-145214 [...] red circle reflects the day he mentioned my “So I should Divorce my Wife” post, in his This and That #102 . Canadian Capitalist [...] [...] red circle reflects the day he mentioned my “So I should Divorce my Wife” post, in his This and That #102 . Canadian Capitalist [...]

]]> By: Big Cajun Man http://www.canadiancapitalist.com/this-and-that-102/#comment-145013 Big Cajun Man Mon, 28 Jul 2008 02:10:57 +0000 http://www.canadiancapitalist.com/?p=1024#comment-145013 Thanks for including me in this group of great articles. No I am not divorcing her! Thanks for including me in this group of great articles. No I am not divorcing her!

]]> By: Weekly Dividend Investing Roundup - July 26, 2008 » The Dividend Guy Blog http://www.canadiancapitalist.com/this-and-that-102/#comment-144728 Weekly Dividend Investing Roundup - July 26, 2008 » The Dividend Guy Blog Sat, 26 Jul 2008 15:18:24 +0000 http://www.canadiancapitalist.com/?p=1024#comment-144728 [...] sure you open up the PERIODIC TABLE OF INVESTMENTS, as presented on Canadian Capitalist’s [...] [...] sure you open up the PERIODIC TABLE OF INVESTMENTS, as presented on Canadian Capitalist’s [...]

]]> By: Drew http://www.canadiancapitalist.com/this-and-that-102/#comment-144533 Drew Fri, 25 Jul 2008 22:39:39 +0000 http://www.canadiancapitalist.com/?p=1024#comment-144533 I agree with Jon. Etrade has helped push lower commissions but it was small independents like TradeFreedom that actually started offering $9.95 commissions. In fact they have been offering $9.95 since 2001. Etrade put pressure on the bank based brokers and forced their hand. Scotia bought TradeFreedom and didn't change the commissions - Scotia will not risk increasing commissions for active traders at Etrade - the attrition rates will be counter what they are trying to accomplish, and that is cater to the active trader segment now. Scotia is showing their commitment to the active trader segment by purchasing brands that cater to those segments. They didn't buy TradeFreedom and change the technology, pricing - in fact they kept the brand. That is a huge commitment. They obviously cant retain the Etrade brand because it will still be in existence in the US and internationally but they will most definitely take the best of all three brands. SMDI is not a brand that appeals to active traders - so what better way to appeal to the segment then by purchasing the brands that do and then develop a brand that blends the best of all three companies. SMDI has excellent research and service, large bond inventory, financial backing, Etrade has great pricing and mutual fund prices, TradeFreedom has great technology and spot forex trading and they have a per share pricing model that is a minimum charge of $1.00. Once the ducks are aligned then they will be a powerhouse competitor to TD. It will be very interesting to watch in the next coming months. I agree with Jon.

Etrade has helped push lower commissions but it was small independents like TradeFreedom that actually started offering $9.95 commissions. In fact they have been offering $9.95 since 2001. Etrade put pressure on the bank based brokers and forced their hand.

Scotia bought TradeFreedom and didn’t change the commissions – Scotia will not risk increasing commissions for active traders at Etrade – the attrition rates will be counter what they are trying to accomplish, and that is cater to the active trader segment now.

Scotia is showing their commitment to the active trader segment by purchasing brands that cater to those segments. They didn’t buy TradeFreedom and change the technology, pricing – in fact they kept the brand. That is a huge commitment.

They obviously cant retain the Etrade brand because it will still be in existence in the US and internationally but they will most definitely take the best of all three brands.

SMDI is not a brand that appeals to active traders – so what better way to appeal to the segment then by purchasing the brands that do and then develop a brand that blends the best of all three companies.

SMDI has excellent research and service, large bond inventory, financial backing, Etrade has great pricing and mutual fund prices, TradeFreedom has great technology and spot forex trading and they have a per share pricing model that is a minimum charge of $1.00.

Once the ducks are aligned then they will be a powerhouse competitor to TD. It will be very interesting to watch in the next coming months.

]]> By: Jon D. http://www.canadiancapitalist.com/this-and-that-102/#comment-144518 Jon D. Fri, 25 Jul 2008 18:58:02 +0000 http://www.canadiancapitalist.com/?p=1024#comment-144518 I do not believe that anything will change at e-trade. Just like with TradeFreedom, BNS is just trying to expand their wealth business as TD is running away from the pack. In fact, BNS changed SMDI as of June 1 to refocus it's operations for high networth clients. Actually, Gene, eNorthern is giving up the discount brokerage business and "handing" it over to Questrade as of Aug. 1. So the "smaller" players are reacting. I do not believe that anything will change at e-trade. Just like with TradeFreedom, BNS is just trying to expand their wealth business as TD is running away from the pack. In fact, BNS changed SMDI as of June 1 to refocus it’s operations for high networth clients.
Actually, Gene, eNorthern is giving up the discount brokerage business and “handing” it over to Questrade as of Aug. 1. So the “smaller” players are reacting.

]]> By: Gene http://www.canadiancapitalist.com/this-and-that-102/#comment-144476 Gene Fri, 25 Jul 2008 16:19:29 +0000 http://www.canadiancapitalist.com/?p=1024#comment-144476 Good links. I totally agree with Rob Carrick. I deal with E*trade, and they have me swearing under my breath regularly, but it's absolutely true that they have been great innovators at introducing customer-friendly services and prices. No question that commissions are lower across Canadian discount brokers because of their price cuts. It scares me that E*Trade Canada is being taken over, as it will likely stifle their creativity. It's too bad that a less competitive brokerage can take them over, as it removes the incentive for E*Trade to compete. Regarding the Hulbert link, I think the last paragraph is key: "Professor Wermers [the study's author] says his advice has evolved significantly as a result of this study. Until now, he says, he wouldn’t have tried to discourage a sophisticated investor from trying to pick a mutual fund that would outperform the market. Now, he says, “it seems almost hopeless.” " Good links. I totally agree with Rob Carrick. I deal with E*trade, and they have me swearing under my breath regularly, but it’s absolutely true that they have been great innovators at introducing customer-friendly services and prices.

No question that commissions are lower across Canadian discount brokers because of their price cuts. It scares me that E*Trade Canada is being taken over, as it will likely stifle their creativity. It’s too bad that a less competitive brokerage can take them over, as it removes the incentive for E*Trade to compete.

Regarding the Hulbert link, I think the last paragraph is key:

“Professor Wermers [the study's author] says his advice has evolved significantly as a result of this study. Until now, he says, he wouldn’t have tried to discourage a sophisticated investor from trying to pick a mutual fund that would outperform the market. Now, he says, “it seems almost hopeless.” “

]]> By: MillionDollarJourney http://www.canadiancapitalist.com/this-and-that-102/#comment-144437 MillionDollarJourney Fri, 25 Jul 2008 09:33:14 +0000 http://www.canadiancapitalist.com/?p=1024#comment-144437 Thanks for the mention CC - enjoy the weekend! Thanks for the mention CC – enjoy the weekend!

]]> By: Michael James http://www.canadiancapitalist.com/this-and-that-102/#comment-144396 Michael James Fri, 25 Jul 2008 03:21:29 +0000 http://www.canadiancapitalist.com/?p=1024#comment-144396 Thanks for including my article this week. Thanks for including my article this week.

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