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AIMster

05/24/05 1:15 PM

#15951 RE: WTMHouston #15938

The fee and trading structure on this almost seems to good to be true, which frequently means that it probably is. I am very open and receptive to looking at what I have missed and why this is not as good a deal as it appears. The one weakness is the inability on window trades to know precisely what price you will get either way since those orders are processed only twice a day, but this is offset by the ability to modify or change the order at any time until the window closes just before the trade time. If you happen to be seeking a trade on a day where the market is moving quickly on a stock, and are not around to look at the price movement as it is happening, you could end up with a much different price than you expected. There are some percentage safety controls for this in their system, and they may be user configurable, but I do not remember what they are off the top of my head.

I've been a FOLIOfn user since 15 May 2001 and have been very pleased with their services overall. The main drawback using their window system is hitting exact prices, though at $0.00 commission, allowing a little lattitude seems to work out most of the time. I supplement the use of their window trades with the Medved Quote tracker (available as adware from Cnet's Download.com or you can kill the ads with an annual $60 subscription). As the FOLIOfn quotes are 20 minute delayed, the Quote tracker gives me a real time window of "20 minutes into the future" so to speak so I can see if a given stock is still going up or has turned 180 degrees and is going the other way. I've been able to kill some orders using this combination.

Another advntage that they offer is to give you a better fill price by matching orders internally beteween their members before going out to the market. If I'm selling 100 IBM and someone's buying 100 IBM, we'll both get a better value. One can also purchase fractional shares so you can hit exact dollar amounts, or you can purchase on a # of shares basis, if you'd rather have whole shares. To answer your question, the cutoff percentage of variance to "kill" a transaction is user configurable. They also offer various methods of tax accounting, LIFO, FIFO, greatest-gain, greatest-loss.

They also have no minimum account size to start with, with no minimum trade size either, so it would be a good place for LD-AIM users. Further, if you want to add money regularly, Electronic Fund Transfers can be set up to debit your checking account regularly. They offer a choice of funds to "park" your cash in, in between securities purchases. While they don't offer the whole market in their window list of tradeable issues, there is, overall a generous mixture of individual stocks, closed-end and exchange-traded funds. They also offer predefined "Folios" from a variety of investment angles if you don't want to select your own. One could buy one of these predefined ones and AIM it as a whole portfolio, I suppose, though I've been more one to choose my own mix of things.

All-in all, I think they merit consideration as another place to make one's investments.

Best,

AIMster