Online Stock Trading

Fidelity to Launch Free Backtesting Tool

BOSTON, Nov 8 (Reuters) - Fidelity Investments, the world's biggest mutual fund firm, said on Thursday that investors could soon test stock-trading strategies with past data on its Web site, becoming the first brokerage to offer the service for free.

Starting in early 2008, visitors to https://www.fidelity.com/ can "back-test" trading theories and strategies using historic data.

"Back-testing has been used by professional traders for more than a decade, and now we are bringing it to everybody and enabling everybody to test their hunches," James Burton, head of Fidelity's retail brokerage products, told Reuters.

Yahoo Personal Finance Launches

Yahoo announced that the company is launching Yahoo Personal Finance to bring more information to users with more new, rich content tools.

http://finance.yahoo.com/personal-finance.

“We hope that Yahoo Personal Finance will be the leading destination for investment information,” said Peggy White, general manager of Yahoo Finance, New York. “Currently, Yahoo Finance is filled with quotes and it is data-centric and there are no offers for consumers to manage other aspects of their financial lives.”

Yahoo Personal Finance consists of how to-guides, calculators, expert opinions, top stories and investment information.

The Web site is uses content providers including Kiplinger, Smart Money, The Wall Street Journal and Motley Fool.

The nine resource centers are: Banking and budgeting, career and work, college and education, family and more, investing, loans, real estate, retirement, and taxes.

Is Google A Mutual Fund?

An interesting article from Dustin Woodward about Google almost becoming a mutual fund:

How Google Almost Became a Mutual Fund
In 2006, Google almost became a mutual fund. To a fund investor, the king of search hardly seems like anything that resembles a mutual fund. And for those who follow Google (GOOG), getting used to Google being labeled media company is hard enough--but a mutual fund? How can this be?
Why Was Google Almost Regulated as a Mutual Fund?
The answer is simple. Google has too much in cash reserves. With almost $10 billion in cash, Google broke the 40% mark, which subjects them to the Investment Company Act of 1940.

The Act regulates companies that are engaged in the business of investing in or trading securities, or have over 40% of its total non-controlling assets in other investments.

Companies that meet either of those requirements are labeled as "investment companies" (more commonly known as "mutual funds").
Most companies do not hold such a significant amount of cash. It's really not an efficient way to run a company. Google's earning about four percent a year on their $10 billion. At that rate, the $10 billion would become a little over $12 billion in five years, but at a more respectable eight percent return, Google's cash would turn into $14.7 billion.

TD Ameritrade Offeres 45 Days Free Trades

Open an account before December 31, 2006 and TD Ameritrade will give you 45 days of free trades.

Fund any non-IRA account with $25,000 and you'll also receive $100 cash in your online trading account.  Fund your account with a minimum of $2,000 and you'll receive the 45 Days of commission free trades.

TD Ameritrade Eliminates Client Account Maintenance Fees

Company Delivering on Brand Promise of Simple Pricing and Transparency    

OMAHA, Neb., Mar 21, 2006 (BUSINESS WIRE) -- TD AMERITRADE Holding Corporation (NASDAQ:AMTD) today announced that it will eliminate account maintenance fees for all retail clients beginning April 21, 2006. These changes apply to each of the Company's over six million retail client accounts, regardless of an account's size or a client's trading activity.

"TD AMERITRADE is focused on furthering the goals of our independently-minded clients, realizing that their needs fluctuate due to life changes, market swings or even their confidence in any given investment," said Joe Moglia, chief executive officer. "We want our clients to manage their accounts and investments their way, and removing this barrier gives them one less thing to worry about."

In addition to the elimination of account maintenance fees, legacy TD Waterhouse clients will have, for the first time, access to client support 24-hours a day, seven-days a week, excluding market holidays. This is yet another step the Company is taking to create a simplified, yet comprehensive, experience for all clients.

The Company does not expect to update its guidance based on this change. More information regarding this change and the Company's long-term client strategy will be available at the TD AMERITRADE quarterly earnings call on Monday, April 24, 2006.

E Trade Financial

E*TRADE FINANCIAL Corporation (NYSE: ET) announced the launch of its E*TRADE Complete Protection Guarantee, providing complete fraud coverage, as well as complete bill payment protection and complete privacy protection to all customers, effective immediately. The E*TRADE Complete Protection Guarantee extends the company's stringent physical, electronic and procedural safeguards to further protect customers in the event of online theft committed via unauthorized access to a customer's investing, cash management or lending account.

The vast majority of online identity theft and fraud perpetrated against consumers occurs through unauthorized access to personal computers - primarily when consumers fail to secure their computers with anti-virus software, firewalls and anti-spyware. A study released today by Insight Express, commissioned by E*TRADE FINANCIAL, finds that 77% of Americans believe their financial institution holds primary responsibility - or responsibility equal to the customer - for taking security measures to protect a customer's assets. However, many consumers do not recognize that they may be responsible for losses incurred when thieves strike. A report published by industry research firm Gartner, Inc. notes, "Unlike banks, brokerage accounts aren't protected by Federal Deposit Insurance Corporation and Regulation E rules, which typically ensure that consumers get their money back."

Dell downgraded by Banc of America Securities

Feb 17, 2006.  Dell was downgraded to neutral from buy at Banc of America Securities. "We see several headwinds - continued operating margin pressure and slow growth in operating income; continued weak margins in the consumer business; continued slowing U.S. PC unit growth rate; and slowing growth rates in enterprise servers due to greater competition, especially from H-P," the broker said.

Top Ranked Discount Brokers

SmartMoney ranked their top discount brokers in Nov. 2005.  The top 5 were:

1. HarrisDirect
2. Muriel Siebert
3. Firstrade
4. Ameritrade
5. OptionsExpress

We're liking firstrade if you want no frills.  SmartMoney had this to say of the 6.95 a trade firm:

'Bond capability and accounting tools move this dirt-cheap firm into prime time.'

Forex Capital Markets to purchase Refco

FXCM Agrees to Purchase Assets From Refco
Friday November 11, 12:32 pm ET

NEW YORK, Nov. 11 /PRNewswire/ -- Forex Capital Markets LLC (FXCM) has signed a Memorandum of Understanding with units of Refco, Inc., with an agreement to do the following:
    FXCM or an affiliate has agreed to purchase the retail client accounts of
    Refco FX Associates LLC (RefcoFX.com), which are traded on the FX Trading
    Station platform.

    FXCM has also agreed to buy the 35% share of Forex Capital Markets LLC
    currently owned by Refco Group Ltd LLC.

The announcement was made today by Drew Niv, CEO of Forex Capital Markets, the foreign exchange brokerage firm. FXCM is a Futures Commission Merchant registered with the CFTC and is a member of the National Futures Association.

"Both purchases are subject to the approval of the U.S Bankruptcy Court, which is currently overseeing Refco's chapter 11 cases," said Niv.

Discount Stock Broker

Discount Broker. Discount brokerages do not offer any advice or research - they simply transact your trades with no frills. Because they manage fewer products than their full-service counterparts, discounters charge considerably lower fees. They also often offer online computer order entry services. Live brokers at these brokerages are usually paid a fixed salary to execute your trades. They don't solicit, and they aren't paid commissions. Discount brokerages make money by doing business in volume, competing mostly on price and "reliability" of the service: if they have the lowest prices and the best service, they get the most trades.