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May 7, 2006 9:09 am

When you are employed by a wirehouse, in a fa role or a sales assistant role, how can you trade and invest? For example, say I read an article, like a stock for my own portfolio, can I just jump right in it, or do I have to go through any hoops? Just wondering...I am still in the interview process. How does this change if you want to put some of your clients in it?

May 7, 2006 9:31 am

No hoops, per se. It really depends on the stock and whether or not it

was being purchased due to a recommendation from a firm's analyst. If it

was just rated a 'buy' (like we really care...), and you wanted to purchase

it, you would have to wait 24 hours before buying.   Same thing on a

stock which was just rated 'sell'.



Also, you may or may not be able to recommend a stock to a client

assuming you were to take a position of more than 50,000 shares.

Example.... if you found a $2 stock, and you had a small group of clients

who wanted to take a position. I'm not sure that you'd be able to solicit

your clients for something like this, since wirehouses generally have a

non-solicitation rule for stocks under $5.   Concerning your OWN

account, you shouldn't have any problem initiating a position within a

stock like this.



The restrictions continue on the amount of discount that you wanted to

give yourself. The firm sets the commission rates for employee accounts,

and you have to follow it. Nothing necessarily wrong with that.



You can buy all mutual funds without a load.



So, yes... you still have the freedom to trade within your own account.

Your firm, however, would rather see you spend time trading and

recommending for your clients, rather than day-trading for your own

benefit. But, you have lots of freedom, with some restrictions.



I will say... some firms require that you and your spouse carry ALL of your

brokerage activity through your employing firm. Also, any accounts

(excluding banking relationships) that you carry AWAY from your firm will

have to send duplicate statements and confirms to your employing firm.



Good luck.



C

May 7, 2006 11:12 am
Boomer:

When you are employed by a wirehouse, in a fa role or a sales assistant role, how can you trade and invest? For example, say I read an article, like a stock for my own portfolio, can I just jump right in it, or do I have to go through any hoops? Just wondering...I am still in the interview process. How does this change if you want to put some of your clients in it?



Secretaries don't have clients. Don't worry about it.

Jan 25, 2007 11:39 pm

what are the employee discounts at say large wirehouses, like UBS, merril, MS, etc.

and what's the commission rate that is NORMALLY charged per trade?

Jan 25, 2007 11:42 pm

can you get ZERO commission on a trade if you're a sales assitant, client associate for a wirehouse?

Jan 26, 2007 2:14 pm
youyoume:

can you get ZERO commission on a trade if you're a sales assitant, client associate for a wirehouse?


EDJ charges its FAs $29.95 per equity trade, which I think is outrageous.

Jan 26, 2007 2:18 pm
Borker Boy:
youyoume:

can you get ZERO commission on a trade if you're a sales assitant, client associate for a wirehouse?


EDJ charges its FAs $29.95 per equity trade, which I think is outrageous.





And what do they charge clients.

Jan 26, 2007 2:22 pm

LPL charges $30 on equity trades and just came out with a $100/year charge for maintaining accounts outside the firm due to the manual compliance work.  I'm not happy about it, but until they bring the trade charge down to ten bucks a pop, I'll reluctantly pay it, since I'm running about 30 trades a year...just call me a cheapskate...

Jan 26, 2007 2:24 pm
Indyone:

LPL charges $30 on equity trades and just came out with a $100/year charge for maintaining accounts outside the firm due to the manual compliance work.  I'm not happy about it, but until they bring the trade charge down to ten bucks a pop, I'll reluctantly pay it, since I'm running about 30 trades a year...just call me a cheapskate...



You cheapskate!

Jan 26, 2007 3:51 pm
Borker Boy:
youyoume:

can you get ZERO commission on a trade if you're a sales assitant, client associate for a wirehouse?


EDJ charges its FAs $29.95 per equity trade, which I think is outrageous.



Again with the mud slinging.  Three times a year (coincidentally right after bonus time) we have commission free day.  We can place one trade at no charge, up to 500 shares or $25K.  If it's more than that they'll ding us the $29.95.  Indy said that LPL charges $30.  How about the other firms?

Jan 26, 2007 4:07 pm
Spaceman Spiff:
Borker Boy:
youyoume:

can you get ZERO commission on a trade if you're a sales assitant, client associate for a wirehouse?


EDJ charges its FAs $29.95 per equity trade, which I think is outrageous.



Again with the mud slinging.  Three times a year (coincidentally right after bonus time) we have commission free day.  We can place one trade at no charge, up to 500 shares or $25K.  If it's more than that they'll ding us the $29.95.  Indy said that LPL charges $30.  How about the other firms?



If you trade your own account actively why not go with IB or MBTrading, as far as I know you just have to have duplicate copies sent to your firm to satisfy compliance.  You can get flate rates of $9.95/trade.


Jan 26, 2007 4:20 pm

Every firm is different.  AGE is 50% discount from the standard rates.  I think it was the same when I was at Merrill.

Jan 26, 2007 4:34 pm

Why don't you guys give the real price?

If you arent some piker you WILL NOT be paying 30 bucks per trade.

Try %1 of the TOTAL transaction value if you are lucky.

So if you are actually taking postions with real money (30k-100k for example) start talking 300-1000 bucks a trade meaning 600-2000 bucks round trip.

It is unfortunate you have to eat your own cooking. Anyone here a FA at a firm where you can still hold accounts at discount brokers?
If one is active it could save a pretty penny.

Jan 26, 2007 4:45 pm
worth6788:


So if you are actually taking postions with real
money (30k-100k for example) start talking 300-1000 bucks a trade
meaning 600-2000 bucks round trip.

It is unfortunate you have
to eat your own cooking. Anyone here a FA at a firm where you can still
hold accounts at discount brokers?
If one is active it could save a pretty penny.





Yikes, is it really that much? I find that hard to believe.



Ok, how much does EDJ/other wires charge for a client trade?

Jan 26, 2007 4:54 pm
worth6788:

Why don't you guys give the real price?

If you arent some piker you WILL NOT be paying 30 bucks per trade.

Try %1 of the TOTAL transaction value if you are lucky.

So if you are actually taking postions with real money (30k-100k for example) start talking 300-1000 bucks a trade meaning 600-2000 bucks round trip.

It is unfortunate you have to eat your own cooking. Anyone here a FA at a firm where you can still hold accounts at discount brokers?
If one is active it could save a pretty penny.



No you're wrong.  I can trade with my firm for 30 bucks a trade, 60 round.

Get your facts straight before you start spouting off your mouth.

Jan 26, 2007 5:00 pm

Why not just get an online Scottrade account pay a flat $7 a trade, market or limit orders, and send your duplicates to compliance?  It amazes me that people actually pay you good money to manage their money when you can't even manage your own money wisely.  In this market it would be really hard to make a profit paying $300 a trade, or even $29.99 a trade. 

Jan 26, 2007 5:01 pm

You cannot trade unlimited shares for that price. Stop lying to the board. I would only expect such actions from an EJ employee.....but still...stop it!

Jan 26, 2007 5:06 pm

hum.......I guess the last 3 years have been a fluke.  I wonder if Scottrade realizes that I have been getting $7 trades all this time....................Yes, you can that is why they are called a discount broker.  Which firm are you with again???

Jan 26, 2007 5:11 pm
worth6788:

You cannot trade unlimited shares for that price. Stop lying to the board. I would only expect such actions from an EJ employee.....but still...stop it!



I know for a fact that I can, if you were referring to my post.

As for WADRED's comment, if you are with an NYSE firm you have to get the firm's permission before opening an outside account.  You can't just open the account and send statements to compliance.

Then again, I don't think Waddell and Reed is NYSE.

Jan 26, 2007 5:12 pm

WADRED I was talking to the piker who places 5k trades and works for EJ saying he gets unlimited shares for $30.

Of course a discount broker will have a great deal. My compliance is such that everything has to be in house, has been so for a very long time. I do not think this will change either. I would probebly save 50k a year paying 7-8 bucks for unlimited shares over at fidelity or scott trade - I am happy for you that you get to do so.