By THERESA W. CAREY
Because of so many execution problems at online brokers, we've begun to see the pendulum swing away from browser-based Web trading and toward systems relying on software and direct Internet connections.
Texas-based MyDiscountBroker.com is part of the trend: It is phasing out trading through its website to focus on a custom CD-ROM package called CSS.
CSS, which is written in Microsoft ActiveX, has an opening screen that displays what's in your portfolio, as well as your recent transactions. But the screen is cluttered and can be difficult to interpret: The display area is curiously small, and can't be maximized to use all the space on your monitor. That means you'll often have to waste time scrolling down and across a spreadsheet-like display. Clearly the screens need work to make them easier to read.
MyDiscountBroker
What can be traded online? | |
Stocks: | Long, short |
Mutual Funds: | 6,000 total |
Options: | Yes (Equity and index) |
Bonds: | Via web site or live broker (not now available on CSS) |
Other: | CDs, Unit investment trusts, employee stock option exercise |
Limit Order Commissions: | $12 |
High Account Balance Benefits: | None |
Getting to the trading screen also is a bit cumbersome, but the order entry process is clear and simple. As soon as you type in a ticker symbol and hit the Tab key to begin entering an order, the screen displays the name of the security you've requested, along with a real-time quote.
After you complete the order entry screen and hit the "Continue" button, you're taken to a confirmation screen that shows you your order and lets you correct any possible mistakes. Market orders are executed within seconds when the exchange is open, and a trade execution screen pops up quickly. Your account status is updated immediately as well.
Busy traders can search transactions based on various selection criteria, such as date, ticker symbol and type of trade, to see how they're doing. Portfolio reports, which are updated with real-time quotes, display unrealized gains and losses for open positions. A mouse click on a "Refresh" button brings in new real-time quotes as necessary.
MyDiscountBroker offers these so-called "snapshot" real-time quotes with your account, but not "streaming" real-time quotes, which constantly change on your screen along with the prices of the securities.
When it comes to entering trades and tracking their execution, MyDiscountBroker shines. Commissions are low -- $12 for market or limit orders, up to 5,000 shares. The research amenities are limited, but at that price who's complaining? There are plenty of other places to go on the 'Net to find all the information you need. We rate it ** 1/2.
MyDiscountBroker
Trade Execution | 4 |
Ease of Use | 2.5 |
Reliability/Range of Services | 3 |
Amenities | 3 |
Commissions | 4 |
Weighted Total | 16.4 |
Rating | ** 1/2 |
Note: Our rating system gives extra weight to trade execution, reliability and range of offerings.
Contributing Editor Theresa W. Carey does Barron's annual ranking of online brokers.
What do you think? Please e-mail hgold@online.barrons.com.2
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