BUSINESSWEEK ONLINE : MAY 22, 2000 ISSUE
COVER STORY Choose Your Weapons for Untethered Trading Smart phones are ideal. But surprisingly, the Palm VII isn't so hot My first time was at the airport in Burbank, Calif. I was passing the time reading news headlines on my cell phone when I noticed that the stock of Gemstar International Group (GMST), which supplies electronic TV listings to cable and satellite companies, had taken a fall of about five points, to $40 and change. On an impulse, I hit the menu button, clicked my way over to Ameritrade (AMTD), and logged on. I got a real-time quote and then set up a limit order to buy the stock when it hit 35. I hit the send button, and a confirmation popped up. The whole transaction took less than a minute. In the end, the order was never executed because Gemstar's stock headed back up. Still, my foray convinced me that stock trading is the killer app for wireless data networks and the cell phones, pagers, and personal digital assistants that use them. For one, the anytime, anywhere access provided by wireless devices is well-suited for tracking volatile stocks. You also don't need to do a lot of browsing or punch in a lot of characters when you trade a select portfolio of stocks. That's important given the awkwardness of using a telephone keyboard. And wireless trading doesn't cost much more than regular online trading. There already are a lot of wireless trading options around. In just the past year, dozens of brokerages--from Fidelity Investments to smaller firms such as America First Trader--have reconfigured their online services for access via specific wireless gear. For example, Morgan Stanley Dean Witter Online (MWD) launched wireless trading for the Palm III organizer, while trading on Ameritrade can be done using Sprint's Web-enabled cell phones. But some of the big broker names have yet to weigh in. Charles Schwab (SCH) and Merrill Lynch (MER) say they will launch wireless trading later this year. Of all the devices on the market, the Web phone may be the best choice. That's especially true for the active trader who doesn't need a lot of research or hand-holding. Today's phone of choice is the $199 NeoPoint 1000, designed specifically for Web browsing with an 11-line screen, extra programmable keys, and a feature that allows scrolling page-by-page as well as line-by-line. The phone works on the Sprint PCS (PCS) network, and I used it to trade with Ameritrade, Fidelity, and SureTrade. Both Ameritrade and Fidelity have deals with Sprint and are on the Sprint Wireless Web home page. I had to load the SureTrade application, but the process is a snap: You go to SureTrade's home page, pick the type of smart phone you own from a list, and type in your Sprint user ID The phone rings, and you hold down the menu key to bookmark the application. Web sites for wireless trading give you just the basics. You can get real-time quotes and stock index info, check your portfolio performance, and trade stocks for your account. A few allow you to trade mutual funds and options as well. Ameritrade lets you check order status, while Fidelity allows you to create up to five watch lists. These services are more than enough to get the job done, but the sites are short on other tools. Charts are impossible given the small screen size. Also, you can't use the wireless device to set up alert and trigger messages, to warn you of a margin call or notify you when a specific stock moves outside a price range. These instructions must be programmed on the conventional, wired site, which then sends alerts to your wireless e-mail address. And some of the services the wireless applications offer just don't work right. For instance, I could never get a complete copy of my portfolio status from Ameritrade, because Sprint limits incoming messages to 100 characters. AGONIZING. You would think the $449 Palm VII--which unlike the III and V comes with a wireless modem built in--wouldn't have some of those problems because it has a bigger screen than phones and pagers. Think again. I tried my Fidelity and SureTrade accounts on the Palm: E-mail updates, such as a daily market and portfolio report at the markets' close, are easier to read. But charts didn't show enough detail to convey anything more than the most general trends. And because the Palm uses up its battery more quickly than cell phones and pagers, it's not practical to stay connected all day. That renders alerts useless. The worst aspect of trading on the Palm VII is the agonizingly slow speed of its wireless service, Palm.Net. Screens take forever to display, paced by ''sending,'' ''waiting,'' ''receiving,'' and ''preparing screen'' messages. Two-way pagers may be a good compromise. I used the $359 RIM Inter@ctive 950 pager--the device Fidelity used to start its wireless-trading services--over the BellSouth Wireless Data network. Once you get the hang of that pager's scroll-and-click navigation wheel, it's easy to speed through a lot of messages--and Fidelity allows you virtually unlimited reports and alerts each day. You can request quotes and trade stocks by typing in their symbols on the miniature Qwerty keyboard, designed to be used with both thumbs. For trades, Fidelity lets you view your order before it's sent and, after you send it, gives you a confirmation number. But if you change your mind, you'll have to find a wired computer or phone to cancel. By and large, brokerages charge the same for wireless and online trading, generally the lowest commissions around. A few charge a nominal monthly fee, usually around $30, for wireless access to your account, but those costs are disappearing fast. You would still need to pay the wireless carrier for airtime charges, which generally run from $45 to $55 for unlimited access. Sprint also offers plans that include data calls at the same per-minute price as voice calls, or about 10 cents a minute. Morgan Stanley alone among the brokerages bundles trading and airtime costs. It offers unlimited airtime with its online trading service on the Palm III (and later this month, the Palm V) for $82 a month. If you want to receive news stories as well, the fee is $92 a month. Now that I've had a taste of online trading, I'm itching to try out my wireless gizmos on more financial services. Banking and bill-paying are the natural next step, but they aren't here yet. I wouldn't be surprised, though, to see some brokerages offering them this year. They'll find a ready audience. Once you cut the cord, you're unlikely to plug back in. Best Bets The Web phone is probably the best option for the active trader who doesn't need a lot of research or hand-holding. Today's phone of choice is the NeoPoint 1000, designed especially for Net browsing with an 11-line screen, extra programmable keys, and a feature that allows scrolling page-by-page instead of line-by-line By LARRY ARMSTRONG _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS Choose Your Weapons for Untethered Trading TABLE: Wireless Trading Places INTERACT E-Mail to Business Week Online

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