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E*Trade Cuts Fees Too; Active Traders Win This Round

TedTed
in Fund Discussions
FYI: For the record, Charles Schwab (SCHW) took the first shot last month when it reduced trade commission on online stock and exchange-traded fund trades earlier this month. Fidelity undercut Schwab this week by slashing its fee to $4.95, which turned into an all out brawl among the online brokers. Schwab matched Fidelity’s price. TD Ameritrade (AMTD) knocked down its price.

And it’s not over!

E*Trade Financial (ETFC) just announced that effective March 13, it would charge $6.95 instead of $9.99. It also introduced an active trading program and pricing tier for those who do more than 30 trades per quarter, which is lower than the 150+ trades it required to qualify for the “active trading tier.” CEO Karl Roessner made a statement about how investors “experience” matters more than price. You can read it here if you want.
Regards,
Ted
http://blogs.barrons.com/focusonfunds/2017/03/02/etrade-cuts-fees-too-active-traders-win-this-round/tab/print/

Comments

  • VintageFreakVintageFreak
    I think the best thing E*Trade can do for investors is to just close shop and go away.
  • rforno
    VintageFreak said:

    I think the best thing E*Trade can do for investors is to just close shop and go away.

    *snarfs his coffee* How true.

    That said, with ETrade in the commission-war game now to entice more people to get in the markets and churn their accounts to generate commission revenues, can I repeat: THE TOP IS IN!!! /ducks
  • VintageFreakVintageFreak
    @rforno. I didn't even think about that. Investors can be swayed by so many ways. Sometimes we do stuff just because we can and offer up any excuse for our actions. I've been guilty of this myself.

    I totally believe more investors likely to make 2 trades at $5 each than single trade at $10 each.
  • MarkMark
    Someone just reported on another discussion board that Scottrade lowered the fee for equity trades down to $3.95 after a phone call to the brokerage. It could be because they have a large account or that they trade often I don't know. There doesn't seem to be any official news release from Scottrade. Try giving Scottrade a call if you're interested.
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