How do brokers keep clients from leaving?

[Nine_Ender]

Places like Schwab and Fidelity charge about $150. exit fee (gotcha). Do you really want to pay that fee?? Other brokers are about the same. Tell you what, you can keep your account here and buy smaller CDs. Are rates are competitive (we won't tell you about the float). You know, since you have been a "valued customer" (really a headache and an number), we are going to offer you this...

Things are rapidly changing in Canada as some firms pay the transfer fee to get your business and offer far more convenience and flexibility then the old style accounts ( banks and life co's ). The worst thing is some of the banks have better options for their clients but still let their reps funnel their clients into crappy passive accounts ( eg balanced funds ) with sales fees and lousy investment performance. At some point ( maybe this year ) the loss of accounts is going to be severe enough to cause a severe rethink in the industry.

 

[Cabin111]

Most "older folk" (that you made reference about) most likely will not close their accounts because they're not dependent upon the capital in those accounts.

Regardless, traders are less likely to close their account in situations like a "black swan event" whereas an investor may cash out as in put their money on the sidelines to wait for a very cheap discount to jump back into whatever it was that they believe while other investors may just ADD to their investment portfolio when they believe a bottom is in.

The older folks have been through this before (e.g. 2008 - 2010, dot com days, one day market crash)...they've seen it all and they've seen how the markets has reacted in prior Pandemics.

Thus, if there's any panic / account closures...its not going to be from the older folks.

wrbtrader

Getting my quotes in 2001...

 

[.sigma]

Thanks guys, a lot of good info I’m going to look into and use for this paper!

 

[ironchef]

For example, when events such as COVID-19 occur, i'm sure many people have called up their brokers (presumably older folk) and demanded they liquidate their accounts because of the fear of a market decline or other reasons.

I'm writing a paper for class about this topic and need some ideas, wondering if anyone has any experience or advice? Thanks!

Sending us craps like this to keep us from panic and got out of the market:

https://www.schwab.com/resource-center/insights/content/were-here-you

But some of their analysis were helpful:

https://www.schwab.com/resource-cen...uld-you-get-out-market-now-and-get-back-later

https://www.schwab.com/resource-center/insights/content/market-perspective

I actually read what they sent me.

Edit: What really calmed my nerve was this article on 3-23-20 by Liz Anne Sonders. In the past I found her timing exquisite (2011 article on buying real estate for example):

https://www.schwab.com/resource-center/insights/content/triage-throwing-everything-virus

 

[ironchef]

They tell them to look at market history, and say that no matter the problem, buy-and-hold always works out in the end, provided you are young enough to survive the roil and do not need the money to retire with in the next 10 or so years.

Shit like that.

Wrong craps to send to us boomers as we don't have time to wait for the "always work 20 years later".

 

[ironchef]

Thus when a customer calls demanding liquidating, what’s your sell? You can be vague I’m just gathering ideas on how brokers KEEP clients, I understand it’s the clients right to liquidate whenever, but I know there must be some tier or pitch the brokers use to maybe change the clients mind?

By the time someone call, it will be too late. If they think you are a value customer, they try to calm your nerve before you panic.