> > What possible reason would there be to use May Brokerage ???? > --- instant trades rather than funding today, bidding tomorrow and 'maybe' striking next week ;o)
> Any user can ALREADY instantly have access **TO THE ECN**, to the > Island, Robert - see? > There is no ECN. There is a trding desk with an email account a terminal ;o) To get funds in, everything has to run through that bottleneck. For me to trade efficiently I would need to keep ample supplies of e-gold lying around in my trading account. > So there is no conceivable value in a brokerage. > Sure there is. A brokerage with a 1mdc account could credit me on the spot, place my order on the spot, and i might have boght 20 shares and sold 18 of them at a profit before the guy at the trading desk checked his e-gold account once ;o) > Analogy (Jim Ray will like this): setting up a brokerage for dbourse > would be like setting up "MERCHANT ACOUNT PROVIDERS FOR E-GOLD" Use > my service, we can offer real MERCHANT accounts for egold! No sense. > that's why there are intermediaries who offer merchant accounts for > credit cards, but it is impossile to do that business model for > e-gold. > Your analogy doesn't fit. Replace MERCHANT ACCOUNT with e-Gold Mercantile Exchange and you have a system that would take e-gold to new heights. Instant trades in e-gold, rather than lengthy (and costly) transfers back and forth, a myriad of exchangers, etc. > > You can't take friction away from a frictionless system. > Of course not! But calling e-gold or DBourse frictionless is the same as calling a bottle an endless supply. First you gotta get it in there, before you can use it. > > Here's a fact - DBourse is (the first?) pure 100% efficient market, > because of two reasons: (a) there is no concept of an ecn, everyone > using it is a brokerage and (b) due to the instant & not-reversible > nature of internet gold > You are absolutely right. It just isn't instant. I can't put Dolar coupons in in the morning, buy shares, drive the market, sell small portions and take home Dollar coupons in the evening. Instead let's do the maths: I buy $11,500 worth of e-gold and pay 3% commission to the exchanger. Four days and $65 transfer costs later, I have the e-gold in my account. The day after that I have it in the DBourse account and am ready to trade. Cost to get started is above 3% [=5 months dividends] Initial risk is that by the time I get my e-gold the price per share may have increased AND the gold price might have gone up, so I get less shares for my Dollars. Using last week's spot price trading range (Monday-Thursday), between the spot raise and the exchanger's fees I could have lost about 10% before getting my hands on shares. And then on Friday alone the spot dropped by almost 2% between Sydney HIGH and New York LOW. That's 12% in a week of - frictionless - trading. Of course, the market loss is book value only, but if a system is frictionless then there should be no loss in commissions and cost of owenership, let alone a weeks delay, don't you think? All that said, I still think DBourse is great. It just would be much greater with brokerages - or with a decent clearing system... Cheers, Robert budget & privacy website hosting http://www.cyberica.net budget & privacy domain registrations + mail http://www.u2planet.com/cfdomaintrust.html --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
