New Trends: Pros, Cons Of Offering Brokerage Discounts

June 14, 2018 02:51 PM
 
 

A lot of times on AgDay, marketing analysts discuss marketing, fundamentals, and the driving force behind market moves. 

However, there is another aspect to that, and that’s being involved in the markets.

Recently, a company has been offering steeply discounted rates, and Brian Splitt, market analyst with Allendale, Inc., said there are positives and negatives with that sort of practice.

“If you are very well in tune with order entry, you know the tools that you are using and you know how futures work, you know how options work, then that could be a very good way for you to save costs,” he said on AgDay.

The downside is there is execution risk.

“If you’re entering your own orders on your own account, that is your error account—you don’t have somebody else to blame,” said Splitt. “There’s a lot of things that can happen when you’re putting an order in that can get you turned around.”

Hear his full comments on AgDay above.

 

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