E*Trade Lowers Commissions for Active Traders
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One day after E*TRADE Group Inc. announced that it will offer after-hours trading to its customers, the company Wednesday released an new service targeting active traders with commissions as low as $4.95.
Dubbed Power E*TRADE, the new service is a step toward delivering access to customized services for online investors who place a minimum of 30 trades per quarter.
Power E*TRADE will include commission rebates, preferred IPO allocations, free-streaming Nasdaq Level II quotes, and an upgraded trading desk.
"Once again, we are redefining the value proposition for online investors," said Christos M. Cotsakos, chairman and chief executive officer of E*TRADE.
Under the revamped commission structure, Power E*TRADE clients will pay the normal E*TRADE rate up to 30 trades--$14.95 for orders and $19.95 for stop/limit and Nasdaq orders and $9.95 to $14.95 per trade for each trade over 30 and up to 74 per quarter.
Clients who place 75 or more trades will be eligible for Platinum Power E*TRADE and will pay commissions ranging from $4.95 to $9.95.
E*TRADE plans to start offering after-hours trading in September through an agreement with Instinet, the industry brokerage leader in after-hours trading. E*TRADE will trade New York Stock Exchange and Nasdaq securities from trading from 4p.m. to 6:30 p.m. Eastern.