Comments on: How does the stock broker earn your money? http://www.bigfatpurse.com/2009/06/how-does-the-stock-broker-earn-your-money/ Wed, 08 Feb 2012 04:44:12 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Neo Beng Seng http://www.bigfatpurse.com/2009/06/how-does-the-stock-broker-earn-your-money/#comment-269 Neo Beng Seng Thu, 22 Jul 2010 06:49:32 +0000 http://www.bigfatpurse.com/?p=1420#comment-269 Thank you Alvin for your advice. According to the broker, the brokerage's rate for 30 June 2010 is $0.1818 $0.1797 $0.1812 $0.1791 $0.1809 $0.1788 $0.1808 $0.1789 I checked the website and the rate given on the yahoo currency exchange is 0.1797. But I was quoted 0.183 instead. Just called my broker to clarify and it seems that they were unable to provide an explanation. The only reason shared was that it is a company's decision to have that rate of 0.183 for ABC IPO. No supporting doc could be given. Thank you Alvin for your advice.

According to the broker, the brokerage’s rate for 30 June 2010 is
$0.1818 $0.1797
$0.1812 $0.1791
$0.1809 $0.1788
$0.1808 $0.1789

I checked the website and the rate given on the yahoo currency exchange is 0.1797.
But I was quoted 0.183 instead.
Just called my broker to clarify and it seems that they were unable to provide an explanation. The only reason shared was that it is a company’s decision to have that rate of 0.183 for ABC IPO. No supporting doc could be given.

]]> By: Neo Beng Seng http://www.bigfatpurse.com/2009/06/how-does-the-stock-broker-earn-your-money/#comment-1737 Neo Beng Seng Thu, 22 Jul 2010 06:49:32 +0000 http://www.bigfatpurse.com/?p=1420#comment-1737 Thank you Alvin for your advice. According to the broker, the brokerage's rate for 30 June 2010 is $0.1818 $0.1797 $0.1812 $0.1791 $0.1809 $0.1788 $0.1808 $0.1789 I checked the website and the rate given on the yahoo currency exchange is 0.1797. But I was quoted 0.183 instead. Just called my broker to clarify and it seems that they were unable to provide an explanation. The only reason shared was that it is a company's decision to have that rate of 0.183 for ABC IPO. No supporting doc could be given. Thank you Alvin for your advice.

According to the broker, the brokerage’s rate for 30 June 2010 is
$0.1818 $0.1797
$0.1812 $0.1791
$0.1809 $0.1788
$0.1808 $0.1789

I checked the website and the rate given on the yahoo currency exchange is 0.1797.
But I was quoted 0.183 instead.
Just called my broker to clarify and it seems that they were unable to provide an explanation. The only reason shared was that it is a company’s decision to have that rate of 0.183 for ABC IPO. No supporting doc could be given.

]]> By: Alvin http://www.bigfatpurse.com/2009/06/how-does-the-stock-broker-earn-your-money/#comment-268 Alvin Wed, 21 Jul 2010 23:18:51 +0000 http://www.bigfatpurse.com/?p=1420#comment-268 I have not experienced this problem, maybe my trades are small so they were not glaring. But little bits will add up significantly overtime. Thanks for the heads up, I will monitor this in the future! What I know is that the brokerage adjusts the exchange rate according to the foreign exchange market. They act as money changers. 1) I would assume the same thing too. I believe it is of the company's interest to standardise and not let it's staff undercut one another. 2) It is possible the brokerage can earn some money through the process, as they act as money changers. 3) Maybe you should get an explanation from the brokerage 4) For large investment, say $100,000, you can call the broker to negotiate for a better exchange rate, BEFORE you put in the money. Smaller than that, you would lose your bargaining power I have not experienced this problem, maybe my trades are small so they were not glaring. But little bits will add up significantly overtime. Thanks for the heads up, I will monitor this in the future!

What I know is that the brokerage adjusts the exchange rate according to the foreign exchange market. They act as money changers.
1) I would assume the same thing too. I believe it is of the company’s interest to standardise and not let it’s staff undercut one another.
2) It is possible the brokerage can earn some money through the process, as they act as money changers.
3) Maybe you should get an explanation from the brokerage
4) For large investment, say $100,000, you can call the broker to negotiate for a better exchange rate, BEFORE you put in the money. Smaller than that, you would lose your bargaining power

]]> By: Alvin http://www.bigfatpurse.com/2009/06/how-does-the-stock-broker-earn-your-money/#comment-1736 Alvin Wed, 21 Jul 2010 23:18:51 +0000 http://www.bigfatpurse.com/?p=1420#comment-1736 I have not experienced this problem, maybe my trades are small so they were not glaring. But little bits will add up significantly overtime. Thanks for the heads up, I will monitor this in the future! What I know is that the brokerage adjusts the exchange rate according to the foreign exchange market. They act as money changers. 1) I would assume the same thing too. I believe it is of the company's interest to standardise and not let it's staff undercut one another. 2) It is possible the brokerage can earn some money through the process, as they act as money changers. 3) Maybe you should get an explanation from the brokerage 4) For large investment, say $100,000, you can call the broker to negotiate for a better exchange rate, BEFORE you put in the money. Smaller than that, you would lose your bargaining power I have not experienced this problem, maybe my trades are small so they were not glaring. But little bits will add up significantly overtime. Thanks for the heads up, I will monitor this in the future!

What I know is that the brokerage adjusts the exchange rate according to the foreign exchange market. They act as money changers.
1) I would assume the same thing too. I believe it is of the company’s interest to standardise and not let it’s staff undercut one another.
2) It is possible the brokerage can earn some money through the process, as they act as money changers.
3) Maybe you should get an explanation from the brokerage
4) For large investment, say $100,000, you can call the broker to negotiate for a better exchange rate, BEFORE you put in the money. Smaller than that, you would lose your bargaining power

]]> By: Neo Beng Seng http://www.bigfatpurse.com/2009/06/how-does-the-stock-broker-earn-your-money/#comment-267 Neo Beng Seng Wed, 21 Jul 2010 14:33:56 +0000 http://www.bigfatpurse.com/?p=1420#comment-267 Hi, I am very new to this and hope someone could help me with the following: Can the broker earn our money through the differences in exchange rate? I was quoted a rate for S$ to HKD (0.183) by the broker which was higher than the actual rate (0.1818) stated by the bank during ABC IPO. I only realised that after I did some research on the exchange rate for that day. The amount loss was up to 4 figures in S$. I questioned the broker about it and the explanation given was that this rate of 0.183 was set by ABC IPO to ease the IPO application. The broker was unable to provide evidence to support the claim. The only thing that the broker said was that I had agreed to this rate. Hope someone could provide answers for the following questions: 1) Am I wrong to assume that all brokers in reputable firms had to follow the company's rate when quoting the rate to customers? 2) Are they allowed to earn from the differences in exchange rate. Is it an acceptable practice among all brokers? 3) Do I have the right to demand for a refund for the difference? 4) To avoid future incident, other than checking on the actual rate online and not just listening to the broker. What other factors should I consider? Hi, I am very new to this and hope someone could help me with the following:
Can the broker earn our money through the differences in exchange rate? I was quoted a rate for S$ to HKD (0.183) by the broker which was higher than the actual rate (0.1818) stated by the bank during ABC IPO. I only realised that after I did some research on the exchange rate for that day. The amount loss was up to 4 figures in S$. I questioned the broker about it and the explanation given was that this rate of 0.183 was set by ABC IPO to ease the IPO application. The broker was unable to provide evidence to support the claim. The only thing that the broker said was that I had agreed to this rate.
Hope someone could provide answers for the following questions:
1) Am I wrong to assume that all brokers in reputable firms had to follow the company’s rate when quoting the rate to customers?
2) Are they allowed to earn from the differences in exchange rate. Is it an acceptable practice among all brokers?
3) Do I have the right to demand for a refund for the difference?
4) To avoid future incident, other than checking on the actual rate online and not just listening to the broker. What other factors should I consider?

]]> By: Neo Beng Seng http://www.bigfatpurse.com/2009/06/how-does-the-stock-broker-earn-your-money/#comment-1735 Neo Beng Seng Wed, 21 Jul 2010 14:33:56 +0000 http://www.bigfatpurse.com/?p=1420#comment-1735 Hi, I am very new to this and hope someone could help me with the following: Can the broker earn our money through the differences in exchange rate? I was quoted a rate for S$ to HKD (0.183) by the broker which was higher than the actual rate (0.1818) stated by the bank during ABC IPO. I only realised that after I did some research on the exchange rate for that day. The amount loss was up to 4 figures in S$. I questioned the broker about it and the explanation given was that this rate of 0.183 was set by ABC IPO to ease the IPO application. The broker was unable to provide evidence to support the claim. The only thing that the broker said was that I had agreed to this rate. Hope someone could provide answers for the following questions: 1) Am I wrong to assume that all brokers in reputable firms had to follow the company's rate when quoting the rate to customers? 2) Are they allowed to earn from the differences in exchange rate. Is it an acceptable practice among all brokers? 3) Do I have the right to demand for a refund for the difference? 4) To avoid future incident, other than checking on the actual rate online and not just listening to the broker. What other factors should I consider? Hi, I am very new to this and hope someone could help me with the following:
Can the broker earn our money through the differences in exchange rate? I was quoted a rate for S$ to HKD (0.183) by the broker which was higher than the actual rate (0.1818) stated by the bank during ABC IPO. I only realised that after I did some research on the exchange rate for that day. The amount loss was up to 4 figures in S$. I questioned the broker about it and the explanation given was that this rate of 0.183 was set by ABC IPO to ease the IPO application. The broker was unable to provide evidence to support the claim. The only thing that the broker said was that I had agreed to this rate.
Hope someone could provide answers for the following questions:
1) Am I wrong to assume that all brokers in reputable firms had to follow the company’s rate when quoting the rate to customers?
2) Are they allowed to earn from the differences in exchange rate. Is it an acceptable practice among all brokers?
3) Do I have the right to demand for a refund for the difference?
4) To avoid future incident, other than checking on the actual rate online and not just listening to the broker. What other factors should I consider?

]]> By: JasonLim http://www.bigfatpurse.com/2009/06/how-does-the-stock-broker-earn-your-money/#comment-266 JasonLim Sun, 21 Jun 2009 11:04:22 +0000 http://www.bigfatpurse.com/?p=1420#comment-266 To minimise trading cost...... get yourself an Online Trading Account !!!!! To minimise trading cost…… get yourself an Online Trading Account !!!!!

]]> By: JasonLim http://www.bigfatpurse.com/2009/06/how-does-the-stock-broker-earn-your-money/#comment-1734 JasonLim Sun, 21 Jun 2009 11:04:22 +0000 http://www.bigfatpurse.com/?p=1420#comment-1734 To minimise trading cost...... get yourself an Online Trading Account !!!!! To minimise trading cost…… get yourself an Online Trading Account !!!!!

]]>