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Stoever Glass is a "Self Clearing" firm. We process and clear all or our transactions internally, which is more efficient, more flexible and more accommodating for our clients. Many firms no longer have the skilled personnel required to provide these specialized services and are forced to use outside sources. That is more expensive, much less controllable, and much less efficient. Naturally those extra costs are also passed on to their clients in the form of higher prices/lower yields.
In addition to the personal attention and extra support our back office provides, it is also less expensive to "Self Clear" than to use an outside clearing firm. Our specialty enables us to lower our transaction costs and these savings are passed on along to our customers in the form of lower prices/higher yields.
All broker/dealers maintain safekeeping accounts for their clients but almost all firms impose safekeeping account charges such as custodial fees, charges for checks and wires, redemptions, and even mailing charges in some cases. Stoever Glass provides completely free safekeeping.
With a Safekeeping Account, the broker/dealer holds the securities on your behalf. You retain full control, but all bookkeeping and other functions such as the collection of redemptions, calls and interest payments are handled by us, and your cash balances are kept in a Dreyfus money market account of your choice. You receive statements to evidence both your holdings as well as all trading activity and payments made or received. These statements also include all your Dreyfus money market balances and activity, including check writing.
In addition to the convenience and safety, a Safekeeping Account offers the following advantages:
Insurance - There are several layers of insurance protection for your holdings so you don't have to worry about lost or misplaced securities.
It is important to remember that all securities held in safekeeping accounts for all banks and broker/dealers in the United States are held at the same place: The Depository Trust Company (DTC) and the Depository Trust Company insures loss of securities on premises up to $850,000,000.
Securities held in a Stoever Glass safekeeping account are additionally insured for $20 million per account plus $500,000 through SIPC.
We use Dreyfus money market funds in combination with our Safekeeping Accounts because of their conservative reputation, very competitive yields and the large variety of money market funds available for our clients. We offer traditional national tax free and taxable money markets, as well as the following state specific tax exempt funds: California , Massachusetts, New Jersey, New York and Pennsylvania.
Free Check Writing - You can have free unlimited check writing privileges with your Dreyfus Money Market Account.
Consolidated Statements - You receive a monthly statement summarizing all account positions and transactions including all activity in your Dreyfus money market account.
Automatic Sweep - Interest and other proceeds can be swept into your choice of Dreyfus money market accounts or if you want we can send them directly to you or your bank in accordance with your instructions.
Bond Tracking - You never have to worry about missing a maturity or call date. Stoever Glass does the tracking for you.
Free Redemptions - Since 1964 Stoever Glass. has redeemed thousands of bearer and registered bonds for clients. This has made us highly efficient in redeeming personally held securities when they are called or mature. To be efficient in this area is not as easy as it may sound, because over the years, the redemption departments of most banks have changed or have been taken over by competing or merging entities. We have clients all over the country and therefore we have developed relationships with redemption departments that help us facilitate this service for our clients.
Continuous Supervision - Your Investment Executive is able to monitor your portfolio and provide timely advice tailored to your objectives and needs.
Protection - These accounts are strictly regulated and monitored by FINRA and the SEC.
A Word of Caution Regarding Safekeeping Accounts
There are many impressive sounding names for these accounts; but anytime you keep securities and/or cash balances at a brokerage firm, you have a safekeeping / money market account with that firm.
And while these accounts are supposed to be maintained strictly for the benefit of the client, in actual practice that is not always the case. For most firms there is a dual purpose, because they also try to use these accounts to tie up all your funds at their firm, and with it, exclusive access to all of your business.
So be careful not to allow yourself to become isolated at one firm. It is not advantageous to pool all your assets at one firm. It is in your best interest to have a few safekeeping accounts, particularly with at least one discount broker and with a specialty firm, to take advantage of their specialized expertise, better prices, and more personalized service.
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