Magazine article American Banker

Comerica Discount Broker On-Line

Magazine article American Banker

Comerica Discount Broker On-Line

Article excerpt

Comerica Securities is sprucing up its discount brokerage service.

On July 1, the securities arm of Comerica Inc., Detroit, added on-line trading to its menu of services, said Larry C. Kreul, a managing director.

Comerica's discount shop, established in 1983, houses two-thirds of the company's brokerage accounts, with the rest in full-service brokerage, Mr. Kreul said. However, he said, "in terms of revenues, it obviously flip- flops."

The full-service operation brings in two-thirds of brokerage revenues, because of the commissions it charges, he said. Mr. Kreul declined to disclose how many accounts Comerica has in its broker-dealer or the dollar amounts of revenues.

The discount brokerage's new on-line trading feature enhances an existing telephone and personal computer trading capability, Mr. Kreul said.

He said Comerica Securities added on-line trading at the request of customers-particularly investors who were already using the brokerage's PC software. "That, plus the fact that the bank is committing a lot of money to electronic accessibility to its customers."

Customers using any of the three means of accessing the discount operation pay 2 cents per share for an equity market order, with a minimum of $25. For limit orders, Comerica charges an additional $5.

Market orders are placed at the best available price, and limit orders are filled when the security reaches a price set by the customer.

Mr. Kreul said he feels that Comerica's fees are competitive within its niche. …

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