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Fidelity online trade commissions lowered to $4.95 from $7.95

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http://money.cnn.com/2017/02/28/pf/fidelity-cuts-online-trade-fee/

Beginning of a new price war?

The new price applies to US stocks and ETFs. Option prices were also lowered from $.75 to $.65 per contract.

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Luniz97 (Mar. 05, 2017 @ 9:00p) |

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Verified - I just saw that on my Fidelity sign on screen too.

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Obligatory - any sign up bonus to sweeten the deal?

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Now I have to go back and ask them how they can make me feel special inside that everyone has that rate! I do have .50 cent options and 300 free trades for a year.

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Looks like Schwab is matching that:

$4.95 online equity trades 

 

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Luniz97 said:   Now I have to go back and ask them how they can make me feel special inside that everyone has that rate! I do have .50 cent options and 300 free trades for a year.
  how did you get that deal? I tried to negotiate but they would not budge. How much account balanced gets you the cheaper options pricing? 

thanks!

PS: optionshouse has been very good ass I have grandfathered prices of $3 trades and $5 option trades.

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BJGrolle said:   Looks like Schwab is matching that:

$4.95 online equity trades 

 

   Got to love competition. 

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DeGlass said:   https://rewards.fidelity.com/offers/depositbonus
  
Good deal.  Note that "Cash bonus awards made into taxable accounts of $600 or more within a calendar year will appear on your consolidated 1099" so, for some, the mileage deals may be better because I believe that they haven't been reported on 1099

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Great news.  Here are some stocks to short with those cheap trades - 

SCHW -5%
ETFC -7%
​AMTD -10%

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amazing .. 10-15 years back, lot of places would charge $50 or even $100 per trade lol

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vanguard next in line?

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No advantage to keep Trade King account with the majors matching trades

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You mean 25-35 years ago back in 80s-90s, right?  Even at the boom of dotcom era which is late 90s, single digit to low teens $ per trade was already very common for online trade.

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prozario said:   amazing .. 10-15 years back, lot of places would charge $50 or even $100 per trade lol
  
You mean 25-35 years ago back in 80s-90s, right?  Even at the boom of dotcom era which is late 90s, single digit to low teens $ per trade was already very common for online trade.


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ARMAGA said:   You mean 25-35 years ago back in 80s-90s, right?  Even at the boom of dotcom era which is late 90s, single digit to low teens $ per trade was already very common for online trade.
  
My ma still uses a regional broker that charges that (I'm not even aware of their online presence if they have one) because she gets to talk to a broker and they send her a yearly desk calendar.  So yea they're still out there.

And no ma previously wasn't interested in changing as she doesn't trade much.  Still with reputable names like Fidelity & Schwab at under $5 trades I think I may be able to get her attention.  Needless to say there is no way in heck she'd be a good fit for Interactive Brokers

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gobigorgohome said:   
BJGrolle said:   Looks like Schwab is matching that:

$4.95 online equity trades 

 

   Got to love competition. 

  
I just noticed.  I wonder how long it will be until it's down to 99 cents.
Fidelity and Schwab probably can afford to do this, as they offer plenty of other investment products.  I wonder, though, if E*Trade can.

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Fidelity.com margin rate   
Not mentioned in this thread. Margin rated were also slightly reduced. Base rate was not changed, but the added adjustment was modified.

Fidelity.com margin rate you pay depends on your outstanding margin balance—the higher your balance, the lower the margin rate you are charged.
Debit balance Margin rate Effective rate
$500,000+ Base – 2.825% 4.000%
$100,000–$499,999 Base – 0.25% 6.575%
$50,000–$99,999 Base + 0.050% 6.875%
$25,000–$49,999 Base + 1.00% 7.825%
$0–$24,999 Base + 1.50% 8.325%

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In early February, Schwab announced its $6.95 online trading fee, which undercut, Fidelity's $7.95 rate. At the same time, Schwab also announced it will be reducing the expense levels on it's index mutual funds to equal the equivalent index ETF. For example, on March 1, Schwab's S&P 500 index mutual fund and ETF will have an expense rate of 0.030%. The equivalent lowest expense from Fidelity is 0.045% and Vanguard is 0.050%. The Fidelity and Vanguard expenses are on their premium class funds with higher minimums; the Schwab rate may apply to all S&P 500 index funds, regular and premium class - I am not sure.

Since I don't trade much, does anyone know if Fidelity is planning to match Schwab's index fund expense reductions?

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Just go with Robinhood. It is free.

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How much work is involved in moving shares to another broker? Which of the is best these days? Wondering how these compare to ETrade .

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Go to the on line website of your choice. Fidelity and other on line brokers will help you with the transfer and in many cases will offer you a reward of some kind to do so. I only know Fidelity as that has all I have used for a few decades, but others may provide reward links for other brokerage outfits.

Fidelity incentives to be new customer
Double check with Fidelity Investments if the offer listed it still valid..   1-800-343-3548

 

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back to Fidelity I go for trading.
Will move some funds in the next couple weeks.

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All this low trading cost is fine. How is the fill price for market orders? I have both Fidelity and ETrade , even for trades placed at the same time, i get better price at ETrade than Fidelity. Most important thing. You could easily lose more money via bad price.

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manuvns said:   vanguard next in line?
  I'd be welcomed, but they already offer unlimited free trading of Vanguard ETFs.

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rsmiele said:   In early February, Schwab announced its $6.95 online trading fee, which undercut, Fidelity's $7.95 rate. At the same time, Schwab also announced it will be reducing the expense levels on it's index mutual funds to equal the equivalent index ETF. For example, on March 1, Schwab's S&P 500 index mutual fund and ETF will have an expense rate of 0.030%. The equivalent lowest expense from Fidelity is 0.045% and Vanguard is 0.050%. The Fidelity and Vanguard expenses are on their premium class funds with higher minimums; the Schwab rate may apply to all S&P 500 index funds, regular and premium class - I am not sure.

Since I don't trade much, does anyone know if Fidelity is planning to match Schwab's index fund expense reductions?

  Here's the problem with Schwab lowering fees, you have no clue whether that's something they can and will maintain. I'll take Vanguard for the extra $20/year per $100,000 invested -- knowing that Vanguard has a long history of low expense ratios and the ability to convert Admiral-class mutual fund shares to ETF-class shares.

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Aerofreaky said:   No advantage to keep Trade King account with the majors matching trades  

And Tradeking got acquired by Ally, received an Ally privacy notice today. Who knows what Ally will do to the pricing. They are rebranding it as Ally Invest.

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bobley said:   How much work is involved in moving shares to another broker? Which of the is best these days? Wondering how these compare to ETrade  .
It depends. For some it can be done completely online, like when I transferred a couple of stocks from Fidelity to Merrill Edge recently on only took a few days. On the other hand, Capital One Investing (fka Sharebuilder) required a paper form and took around 3 weeks to complete.

If your old brokerage charges you a fee to close/transfer the account, be sure to ask the new company to refund it. Fidelity and Merrill Edge will do it (the refund will probably be taxable but the original charge may be tax deductible).

BTW, an even better deal is to open an account at Merrill Edge. if you keep $100k or more in a combination of that account and Bank of America accounts you can get 100 free trades per month as well as bonus rebates on your BofA credit cards (2.625% on the Travel Rewards card).

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javaman2003 said:   All this low trading cost is fine. How is the fill price for market orders? I have both Fidelity and ETrade  , even for trades placed at the same time, i get better price at ETrade  than Fidelity. Most important thing. You could easily lose more money via bad price.
Why use market orders?  

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TD Ameritrade Reduces Client Pricing to $6.95 for Online Equity Trades   linky

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Looks like this is how they are going to pay for the lower commissions......
http://www.marketwatch.com/story/fidelity-offers-buyouts-to-3000-older-workers-2017-02-28

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montee4 said:   Looks like this is how they are going to pay for the lower commissions......
http://www.marketwatch.com/story/fidelity-offers-buyouts-to-3000-older-workers-2017-02-28

  It is great that they are offering buyouts, rather than straight layoffs.

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fwuser12 said:   TD Ameritrade Reduces Client Pricing to $6.95 for Online Equity Trades   linky
  TDA is going to have to step up it's game.  $6.95 doesn't appear that competitive anymore.

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prastogi2012 said:   
Luniz97 said:   Now I have to go back and ask them how they can make me feel special inside that everyone has that rate! I do have .50 cent options and 300 free trades for a year.
  how did you get that deal? I tried to negotiate but they would not budge. How much account balanced gets you the cheaper options pricing? 

thanks!

PS: optionshouse has been very good ass I have grandfathered prices of $3 trades and $5 option trades.

I don't have a large balance, but I guess it depends on what you consider large

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Clocks said:   
fwuser12 said:   TD Ameritrade Reduces Client Pricing to $6.95 for Online Equity Trades   linky
  TDA is going to have to step up it's game.  $6.95 doesn't appear that competitive anymore.

  It was probably tough for them to stomach a 50% reduction at once to match Fidelity and Schwab.  But maybe more is to come.

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burgerwars said:   
Clocks said:   
fwuser12 said:   TD Ameritrade Reduces Client Pricing to $6.95 for Online Equity Trades   linky
  TDA is going to have to step up it's game.  $6.95 doesn't appear that competitive anymore.

  It was probably tough for them to stomach a 50% reduction at once to match Fidelity and Schwab.  But maybe more is to come.

  I'll bet the ETrade finance guys are up to their eyeballs in data trying to figure out what cut they can make.

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Clocks said:   
montee4 said:   Looks like this is how they are going to pay for the lower commissions......
http://www.marketwatch.com/story/fidelity-offers-buyouts-to-3000-older-workers-2017-02-28

  It is great that they are offering buyouts, rather than straight layoffs.

  With a layoff, probably their employees with less seniority (who also then make less) would be the ones let go.  With buyouts to older workers, employees with more seniority (who make more) would be the ones leaving.  In the end, after paying the buyouts, they're probably saving more, even after some of the long term employees thinking of retiring anyway, now will stick around to see if they can get a buyout.

Of course, less employees means less service, and probably closing some of their branch locations.

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New pricing is valid for both market and limit orders. I have done both yesterday.

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I'm in my 30s and all these young kids just go with wealth front or one of those services or just stay all cash. I have some younger friends and family and they are in their early 20s earning 6 figures and don't have time or want to deal with actual trading.

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