Free Trades With Strings Attached
The online brokers are getting hammered today. Etrade (ET) and TD Ameritrade (AMTD) are both down over 9% with an hour left in trading. The Bank of America announcement of 30 free trades per month will attract many investors. You still must read the fine print. Option trades are $19.95 plus $1.50 per contract. The free trades are only on stocks and ETF's. Bank of America is giving you something that costs them basically nothing. And no load mutual fund transactions are still $45. In return they are hoping that you switch from your local bank to Bank of America. You also must maintain a $25,000 balance in all of your accounts to receive the free trades. This is a good move by Bank of America. Let's see who is next in line to match this offer.
Note: I am long ET
Note: I am long ET
posted by Big Ben at Wednesday, October 11, 2006
2 Comments:
I have no clear exit strategy for ET. If I can get a bounce over the next couple of days I would sell. The uptrend was broken in late April/early May of 2006.
E*Trade & the other competitors will have to match eventually or risk losing their customers. I know I’m thinking of switching! But the Ameritrades & Scottrades of the world cannot since this is their primary source of revenue. I see them getting bought out by the more diversified online bankers.
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