http://www.consumerismcommentary.com/2007/07/16/think-you-pay-high-fees/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sat, 21 Nov 2009 16:42:00 -0500 http://wordpress.org/?v=2.8.5 hourly 1 http://www.consumerismcommentary.com/2007/07/16/think-you-pay-high-fees/#comment-117150 dnn Tue, 17 Jul 2007 08:51:55 +0000 http://www.consumerismcommentary.com/2007/07/16/think-you-pay-high-fees/#comment-117150 I don't think i could go through 90+ :) I don’t think i could go through 90+ :)

]]> http://www.consumerismcommentary.com/2007/07/16/think-you-pay-high-fees/#comment-117139 Flexo Tue, 17 Jul 2007 01:06:17 +0000 http://www.consumerismcommentary.com/2007/07/16/think-you-pay-high-fees/#comment-117139 I think it's understood that the "cost per trade" in accounts is not really a transaction fee for each trade, but a way of breaking down the total fees by a measurement that makes sense to most people -- the same way a car's expenses can be broken down as a car's "cost per mile," which takes all expenses into account and then breaks them down in a way in which the costs can be compared across cars. Also, a piece of clothing's "cost per wear" doesn't mean you have to pay that amount each time you wear it. I think it’s understood that the “cost per trade” in accounts is not really a transaction fee for each trade, but a way of breaking down the total fees by a measurement that makes sense to most people — the same way a car’s expenses can be broken down as a car’s “cost per mile,” which takes all expenses into account and then breaks them down in a way in which the costs can be compared across cars. Also, a piece of clothing’s “cost per wear” doesn’t mean you have to pay that amount each time you wear it.

]]> http://www.consumerismcommentary.com/2007/07/16/think-you-pay-high-fees/#comment-117138 dong Tue, 17 Jul 2007 00:41:10 +0000 http://www.consumerismcommentary.com/2007/07/16/think-you-pay-high-fees/#comment-117138 I think the article is a little misleading about the cost per trade. I imagine UBS accounts mentioned were in Wrap account where they charge a fixed percentage of assets. So dividing that cost by the number of trades is inaccurate. Clearly the company has incentive to sell clients the most expensive product just as a car dealership tries to sell a car with options the client doesn't need. In itself this not a problem, however often times clients are misled by unscrupulous agents to buy things that they don't understand. The article here doesn't give enough to detail to know what really happened. I think the article is a little misleading about the cost per trade. I imagine UBS accounts mentioned were in Wrap account where they charge a fixed percentage of assets. So dividing that cost by the number of trades is inaccurate. Clearly the company has incentive to sell clients the most expensive product just as a car dealership tries to sell a car with options the client doesn’t need. In itself this not a problem, however often times clients are misled by unscrupulous agents to buy things that they don’t understand. The article here doesn’t give enough to detail to know what really happened.

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