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24-07-2013, 02:48 AM
(This post was last modified: 24-07-2013, 02:49 AM by Big Toe.)
Remisiers used to be the only way to trade back then. Not too sure how they are doing now, but I guess it's not great if this article is anything to go by. I still fondly remember them having multiple phones, talking real fast, always feeding market information to us(the clients) and executing trades faster than we can say 'buy'.
I think there is still a place for them, but they have to evolve and offer more than executing your trade.
Should be more of an investment advisor to offer greater value. Also high net worth clients never have the time to
see what's going on in the stock market.
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Just like the typists that lost their jobs due to PCs, printers and word processors, most remisiers are not providing valuable services especially to the small retail investors and when the technology arrives, their jobs are endangered.
Same with the bulk of HDD production engineers in Singapore, pig farmers, tailors, seamstresses, their jobs are lost either due to loss of competitiveness, regulations or the evolve of an alternative solution.
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How i wish the day i can configure my Insurance policy online without agent. Maybe even make some simple property transactions !
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Online trading is definitely the way to go. Who in their right mind would pay 0.5% brokerage anymore?
Now online trading you could go down to as low as 0.15% (Saxo offers that, which is cheaper than their CFDs, although I think they don't advertise it).
That's hefty savings!
Why should we pay a remisier more just so that they can act like big swinging dicks like in the 80s and early 90s? The only industries they supported were all related to vice (KTVs, overexpensive dinner and drinking, gambling)...
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yeah, gone are the days of a stock broker
we will be like US, more retail investors will use discount brokers
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Call me silly.... but I'll stay with my brokers..... even though I don't need them for any investment advice.. Why? The Phillip one, for so kindly agreeing to take me on as a client (my bro-inlaw was my referral) all those years back when I was probably a high risk, low / zero turnover type... The UOBKH one, for being related by marriage...
Think about it. For every $1Mil that you trade, they're likely only earning ~$1k in comms from you. $1Mil seems a lot of money to you, but $1k is...??? Can you even survive on $1k/mth nowadays? Further, how many can do a total of $1Mil trades?? Even in one year?
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Quote:even though I don't need them for any investment advice
It's the other way. They probably need your advice by looking at your buy/sell decisions. I suppose having successful clients under your belt will boost a remisier's chance in getting his own portfolio right.
For example, any broker will be very happy to execute trades for d.o.g.
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(24-07-2013, 10:15 AM)KopiKat Wrote: Call me silly.... but I'll stay with my brokers..... even though I don't need them for any investment advice.. Why? The Phillip one, for so kindly agreeing to take me on as a client (my bro-inlaw was my referral) all those years back when I was probably a high risk, low / zero turnover type... The UOBKH one, for being related by marriage...
Think about it. For every $1Mil that you trade, they're likely only earning ~$1k in comms from you. $1Mil seems a lot of money to you, but $1k is...??? Can you even survive on $1k/mth nowadays? Further, how many can do a total of $1Mil trades?? Even in one year?
Well normal brokerage for a $1mil trade would be 5K at 0.5%, so a round trip would cost you 10K + P/L.
Your 1K example means you're getting your brokerage at 0.1% which is ever better than online trading rates! So maybe you are a super HNWI and therefore it would make sense to keep using your remisier.
Standard local online rate is around 0.25% which is still quite reasonable. but like I mentioned, you could get 0.15% at Saxo or 0.2% (no minimum) at Standchart.
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(24-07-2013, 10:27 AM)mulyc Wrote: (24-07-2013, 10:15 AM)KopiKat Wrote: Call me silly.... but I'll stay with my brokers..... even though I don't need them for any investment advice.. Why? The Phillip one, for so kindly agreeing to take me on as a client (my bro-inlaw was my referral) all those years back when I was probably a high risk, low / zero turnover type... The UOBKH one, for being related by marriage...
Think about it. For every $1Mil that you trade, they're likely only earning ~$1k in comms from you. $1Mil seems a lot of money to you, but $1k is...??? Can you even survive on $1k/mth nowadays? Further, how many can do a total of $1Mil trades?? Even in one year?
Well normal brokerage for a $1mil trade would be 5K at 0.5%, so a round trip would cost you 10K + P/L.
Your 1K example means you're getting your brokerage at 0.1% which is ever better than online trading rates! So maybe you are a super HNWI and therefore it would make sense to keep using your remisier.
Standard local online rate is around 0.25% which is still quite reasonable. but like I mentioned, you could get 0.15% at Saxo or 0.2% (no minimum) at Standchart.
IIRC, broker-assisted is 0.375% but I'm using online, which is 0.28%. My broker still get the comms from my trades and bears my credit risk ie. they chase me for payment when I'm late.. haha... My example refers to a total (not single and includes buy & sell ie. many 2 ways trades) trade of $1Mil, the total comms is aro' $2.8k. But, this is then split 60-40 (?) between the remisier and the Brokering House, that's where I end up with ~$1k for the remisier..
yeokiwi Wrote:They probably need your advice by looking at your buy/sell decisions. I suppose having successful clients under your belt will boost a remisier's chance in getting his own portfolio right.
Haha... there's also the danger that if and when they follow, it happens to be a money losing one...
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Thanks for the clarification, then that makes sense.
That's exactly the model alot of remisiers are surviving on now, they still get a cut of the online trading volume. However, as far as I know, the current split for phone-brokered trades is now 50-50, and online trades are 25-75. So technically, the remisiers are earning less that 1K even on 1mil worth of trades.
It's a tough life out there. I have friends in this line. Those who are surviving are still fairly successful (>5K monthly earnings) but it is not as glamourous anymore, because they are dependent on a handful of old-schoolers who still prefer to call in to place trades.
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