Can the Financial Cafe.com Prove It's More Than Just a
Financial Services Marketing (08/00) Vol. 2, No. 5 p.28; Kapler, Robert

The Financial Cafe.com is an e-brokerage firm that offers free online stock trading with no minimum account balance or restrictions on odd lots. It gives customers a large variety of mutual funds, bonds, securities, and other financial products and several levels of investment research. It has a higher service representative-to-customer ratio than the national average, about one to 300 compared with one to 1,500. The Web site is not an advertising-based model, so users are not bombarded with pop-up balloons and blinking billboards. A drawback to Financial Cafe is that its counsel is no better than what an investor can find with a direct financial advice provider or a financial engine. Also, many critics claim that selling orders to market makers for the actual execution of orders often results in poor trade executions.


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