Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
In my opinion, the major traditional firms are having an internal struggle, producers versus “self directed”. I think they are trying to transition to the fee based model. Once that is done they can offer the transaction model online as self directed. In a nut shell, they are afraid that their producers will get upset and leave if they “compete” for self directed.
I think they will discover that every one with a computer has an online account. And as the online firms began to compete for “assets” and be successful it will wake up the “sleeping giants”. They will decide to participate. Charles Schwab is doing a good job of gathering assets. Just look at the offerings of the big traditional firms, they were second rate at best. They will figure it out. We are not that smart.
Banks and brokers have always been like oil and water. As groups, we look at everything differently. And so each foray has been painful. But the banks are learning…a branch on every desk, and brokerage is a part of what can be offered. They will learn that price, even zero, means nothing when you can’t comfortably make the trade.
But as online banking grows they will learn. Which ones… I am not in that line of work, but I think it won’t take too much to pick the aggressive ones. I think the successful one will buy not build so that they get the management to lead.
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
As I said, options traders trade both sides of the market. Remember, we started the firm in an ugly bear market, 2000. Our customers were overall very successful. The pundits like to say retail customers are “sheep”. Well if that’s the case, our customers have proven that it was because they had a “broker” who was the herder. Ned
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
I have been a broker for more than 40 years and the one thing I can guarantee you is there will never be just “one” broker. Customers identify with their broker and they stay with them due to the personality.
When we started optionsXpress no broker, on line or traditional were treating options seriously. We changed that and due to the other brokers joining the fray the whole market is growing. We are delighted that the “big” guys have started advertising. “When the circus comes to town ALL BALOON VENTORS do well”.
The greatest thing for us and the options industry would be if the “big” guys really got serious on options and made them the number one asset class. But, alas, I dream.
I will say this; we have an options franchise that will bring 90% of the options traders to at least visit us. And to be honest, we are still light years ahead of the “big” guys. That doesn’t mean “everyone will love or even like us”. It just means they all know who we are.
As for advertising and growth; we have plenty of resources to compete. And our growth is and has been deliberate and measured and will continue to be. You can really make customers mad if your growth out paces your service. Ned
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
Thanks. While we do not give “guidance” on % of income derived from any source, let me say that we are not a bank, we are a broker, and in the retail self directed space, we are transactional. That said, we have a second brand, brokersXpress, which is an RIA and caters to independent brokers, money managers, small hedge funds and family offices world wide.
We are comfortable with our model. Remember, options traders’ trade both sides of the market unlike stock trades do. So we participate in down markets as well as up markets. In fact, our best market is a side ways volatile market. Ned
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
As a retail trader I have no clue as to what the banks are doing. However, I put it out to our institutional traders. So...if I get an answer I will relay. Ned
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
No, I will let the world see my answer. I love your email address.
We will continue, for the most part, to partner, while building "our" education. We believe that general education can be done in house and specific types need to be out side.
We like to hear feed back about the instructors as we can help getting the best. Ned
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
The new portfolio margining will be a “step up” for the industry. We are very excited about it. The big question is the size of the account that will benefit.
We believe all accounts with spreads or complicated positions will benefit. We are ready for the retail roll out. Ned
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
Thanks for your comment. I have traded options for more that 30 years, and I must say, other than a covered call and a one to one index put, I have never seen any one make money with fewer than 5 lots. In fact, most programs show the optimum is 8 contracts or more.
We have priced to make money. We are a great value for the 8 contracts + traders. I have a problem pricing to encourage a one lot trader, as I don’t believe they have much of a chance.
We have a great virtual site to practice, at no charge.
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
I think consolidation is inevitable. It has been in all industries. The Wall Street analysts see E*TRADE and Ameritrade as candidates. I think you may see banks and other traditional brokers get in the mix, too. Ned
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
I think they will discover that every one with a computer has an online account. And as the online firms began to compete for “assets” and be successful it will wake up the “sleeping giants”. They will decide to participate. Charles Schwab is doing a good job of gathering assets. Just look at the offerings of the big traditional firms, they were second rate at best. They will figure it out. We are not that smart.
Banks and brokers have always been like oil and water. As groups, we look at everything differently. And so each foray has been painful. But the banks are learning…a branch on every desk, and brokerage is a part of what can be offered. They will learn that price, even zero, means nothing when you can’t comfortably make the trade.
But as online banking grows they will learn. Which ones… I am not in that line of work, but I think it won’t take too much to pick the aggressive ones. I think the successful one will buy not build so that they get the management to lead.
Ned
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
When we started optionsXpress no broker, on line or traditional were treating options seriously. We changed that and due to the other brokers joining the fray the whole market is growing. We are delighted that the “big” guys have started advertising. “When the circus comes to town ALL BALOON VENTORS do well”.
The greatest thing for us and the options industry would be if the “big” guys really got serious on options and made them the number one asset class. But, alas, I dream.
I will say this; we have an options franchise that will bring 90% of the options traders to at least visit us. And to be honest, we are still light years ahead of the “big” guys. That doesn’t mean “everyone will love or even like us”. It just means they all know who we are.
As for advertising and growth; we have plenty of resources to compete. And our growth is and has been deliberate and measured and will continue to be. You can really make customers mad if your growth out paces your service. Ned
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
We are comfortable with our model. Remember, options traders’ trade both sides of the market unlike stock trades do. So we participate in down markets as well as up markets. In fact, our best market is a side ways volatile market. Ned
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
We will continue, for the most part, to partner, while building "our" education. We believe that general education can be done in house and specific types need to be out side.
We like to hear feed back about the instructors as we can help getting the best. Ned
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
That is a good suggestion, we will look at it. Ned
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
We believe all accounts with spreads or complicated positions will benefit. We are ready for the retail roll out. Ned
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]
We have priced to make money. We are a great value for the 8 contracts + traders. I have a problem pricing to encourage a one lot trader, as I don’t believe they have much of a chance.
We have a great virtual site to practice, at no charge.
BTW, active traders pay $12.95. Ned
Interactive Q&A: Ned Bennett, Co-Founder and EVC of optionsXpress [View article]