elephantX news
Dear elephantX Community Member,
As one of our initial community members, we wish to thank you for helping us successfully make Zero Commission online trading a reality. We believe that our relationship with you is the key to our success and our ability to continue to offer individual investors Zero Commission online trading. Effective Monday September 17th, 2001, we will be making some changes to our fee schedule. Zero Commission online trading will remain in effect for the majority of our community members: the new changes will primarily affect the accounts of Pattern Day Traders. We believe it is important to inform all community members of the changes, how they may affect you, and how you will benefit from the changes. We want to assure you of our commitment to continue to offer individual investors Zero Commission online trading, and, to now offer Pattern Day Traders one of the most competitive commission rates available.
Significant changes have occurred in the Brokerage and Securities Industry over the past several months that have played a factor in our decision to adjust our commission structure. Two of the more publicized and significant changes have been the conversion from fractions to decimals(Decimalization), as well as the establishment of the Minimum Price Variation(MPV) at .01 cent. A third change, the recent updates to NYSE Rule 431 and NASD Rule 2520, directly affects the activity and accounts of Pattern Day Traders. These changes have greatly affected the way brokerage firms operate and conduct business. Brokerage firms have incurred a higher cost in maintaining, supervising and ensuring compliance with various regulatory and market making organizations as a result of these and other changes.
The details of our new pricing structure are outlined below. We will attempt to contact all Pattern Day Traders who are affected by these changes over the next few days.
Details of New Pricing Structure-Effective Monday September 17th, 2001:
1. Zero Commission Online trading will remain for all community members not classified as Pattern Day Traders, under the criteria established by the NYSE & NASD.
2. Pattern Day Trading accounts. Pattern Day Trading accounts will be converted from our SmartFee plan to the following low cost commission structure:
$4.00 commission per online market or limit trade up to 5000 shares.
Rebate of $1.00 per trade once account activity exceeds 250 commissionable executable trades per month(example: 300 trades=$300 rebate)
No monthly SmartFee
$25,000 minimum equity required
3. Flat SmartFee Schedule. All accounts opened and funded before September 17th, 2001 will be grandfathered in at the tiered monthly SmartFee schedule. All accounts opened and funded after September 17th, 2001 will be charged a $9.95 monthly SmartFee, regardless of account size.
All of us at elephantX Online look forward to continuing to offer you the best value for your online investing and trading needs. Zero commission for online investors is here to stay, as well as the most competitive rates available for Pattern Day Traders. If you have any questions or concerns, please contact us via our web site or call us toll free at 1-877-826-9857.
Thank you,
David Schulman
VP-Retail Brokerage
elephantX Online Securities LLC.
Member SIPC/NASD |
