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That wasn't related to zero expense ratio index funds, but instead on the foreign exchange derivatives market. Matt's point is that the worst clients get the be
by jonknee 8y ago
That wasn't related to zero expense ratio index funds, but instead on the foreign exchange derivatives market. Matt's point is that the worst clients get the best pricing and the people you'd normally want to have as clients get the short end of the stick.
- nabla9 8y agoYes. But the worst client is only worst because he is price aware. The natural development in financial industry with increased automation is to make everyone the worst possible customer for the financial service provider and that's a good thing.
- jonknee 8y agoSure, all he's saying that in a perfect world you could give the best price to people you like.
- mLuby 8y agoA recipe for cronyism.
- toomuchtodo 8y agoSustainable financial service/investment banking businesses are based on relationships, not razor thin margins and excessive leverage between parties.
- PeterisP 8y agoIt seems a bit on the opposite - that it's natural to like/prefer customers who are suckers and will gladly overpay you significantly for no good reason.
- hammock 8y ago>the worst clients get the best pricing That's how it always is, in every market. Fact of business. Your worst customers are the most price-sensitive and the least loyal - but you can't turn them into better customers by making them pay more in a tiered loyalty structure, that's not how it works. They'll go to a competitor. Your best (meaning worth investing in) customers on the other hand, WILL pay more. That's not a bad thing. They're happy to do so.
- ambicapter 8y agoThere's got to be a way for trust to be financially advantageous.
- Spooky23 8y agoIt can be, but it needs to be for a service that offers some other value. The problem is that doesn’t scale — most customers don’t care.