Arvest Offers ?Net? for High-Wire Trading
by June 11, 2001 12:00 am 133 views
Day trading and even portfolio upkeep over the Internet can be a high-wire trick for novice investors. Arvest Asset Management offers a Net.
After three years of quietly promoting its online trading business with in-house ads and bank statement stuffers, the investment arm of Arvest Bank Group Inc. has taken its fastest growing segment to the masses. Arvest Asset recently bought billboard space along Interstate 540 to tout its $29.95 stock trades through its Rogers-based trading center, Arvest1.
It’s the first public advertisement for the product, which for the nominal local billboard rate of $550 to $800 per month could have a big impact on that segment. Mel Parks, Arvest Asset’s CEO, said the company’s goal was to price its online service to be as competitive as possible with Internet mega brokers such as Ameritrade.com.
“We knew we couldn’t be the low-cost trader,” Parks said. “The national folks doing the $5 and $8 trades can, because market makers are paying them a penny or nickel per share to route their orders. But we have a great value for people who like the security of doing business with someone locally.”
Ameritrade, the Omaha, Neb., firm popularized through its television commercials that hype $8 stock trades, offers limit orders for $13 each. Costs increase if customers speak to a broker rather than conducting a trade electronically. Arvest1’s limit orders are $39.95, but even with regular trades customers are welcome to get technical help from one of six licensed Arvest1 traders.
It costs $15 to wire transfer money from Arvest to an Ameritrade account, and customers have to wait a day or so until the transaction is processed. So by simply using Arvest1, the bank’s customers can receive same-day service for only a few dollars more than what Ameritrade orders cost.
Since starting from scratch in 1998, the number of Arvest Asset’s active Internet customers has increased to more than 5,000. Parks said about twice as many customers make less frequent Arvest1 trades. After about six months, Parks said, the Arvest1 Internet trades made up about 15 percent of the firm’s equity trades. Now the figure is closer to 65 percent.
Arvest1 accounts may be set up within a matter of minutes, and whether a customer trades 10 or 10,000 shares, the price is the same. Many national Internet brokers charge or add costs by volume.
Arvest Asset also offers full-service brokerage accounts and additional investment and management products through its Arvest Trust department.