E*Trade cuts prices for active online traders
Reuters, Wednesday, August 18, 1999 at 15:21
MENLO PARK, Calif., Aug. 18 (Reuters) - No. 2 U.S. Internet
broker E*Trade Group Inc. (NASDAQ:EGRP) said on Wednesday it would
offer rebates for its most active customers, allowing some to
buy and sell stocks for $4.95 a trade.
The brokerage firm, which on Tuesday announced plans to
offer stock trading past the close of U.S. markets through
electronic-share-trading leader Instinet, said it would offer
some customers special commission rebates, free real-time stock
quotes from Nasdaq market makers and alternative trading
systems, preferred new stock offering allocations and real-time
account updates.
Online discount brokers and traditional Wall Street firms
are vying to capture the flood of investors buying and selling
stocks on the Internet. E*Trade, like other online brokerages,
now is targeting the growing number of individuals who trade
stocks frequently.
At the same time, two analysts increased their loss
estimates for the Menlo Park, Calif.-based broker's fourth
quarter, citing expecations for flat revenues in the September
quarter because of sluggish trading.
Its stock price was down 13/16 at 29-7/16 on the Nasdaq
market.
E*Trade's latest features would expand its Power E*Trade
service for online investors who place a minimum of 30 trades a
quarter, and would further the broker's ultimate goal of
offering round-the-clock trading.
Under the new commission structure, Power E*TRADE customers
would pay the standard E*TRADE rate for up to 30 trades --
$14.95 for market orders and $19.95 for stop limit and Nasdaq
orders. Then, for each trade over 30 and up to 74 a quarter,
Power E*TRADE customers would get a $5 rebate and be charged
$9.95 and $14.95 a trade respectively.
Those E*TRADE customers who place 75 or more trades a
quarter -- so-called Platinum Power E*TRADE customers -- could
trade market orders for $4.95 and stop limit and Nasdaq orders
for $9.95 a trade, after a $10 rebate, the company said.
The rebates would be credited to customers accounts on a
monthly basis, E*Trade said.
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