TD Ameritrade to Lower Commissions
April 24th, 2006 by Grant in: Investing
TD Ameritrade reported that their second quarter profit doubled due to an increase in commissions, fees and interest income, according to a MarketWatch.com report.
HOWEVER! The best part of this report is that they will be lowering retail commissions to $9.99 from $10.99, putting my fears from a previous post to rest. While it’s not much, it is a move in the right direction.
Starting today, Ameritrade has a new look to it’s website, and it appears that they’ve adopted many of the old TD Waterhouse logos and styles. It’s kind of catchy, but I’m more concerned with their trade execution and support during the merger of two client bases.
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April 24th, 2006 at 10:41 pm
Commissions will continue to go lower across all the brokerage houses. Check out this site, http://www.izone.com/ . It’s a spinoff of Ameritrade and offers $5 commissions. It can offer these low commissions (it claims) because it is all automated via the internet and there is no need for physical staffing. It’s disclaimer is that the user has to be comfortable managing his/her own account. Check it out and let me know what you think.
April 25th, 2006 at 8:26 am
Hey Winstson,
The Ameritrade Izone setup is pretty handy, and you have to love those $5 commissions. Izone is the stripped down version of the regular TD Ameritrade account, meaning that if you want a lot of the handy tools, you pay extra.
For instance, to get level II quotes is an extra $14.99 per month. This does mean, however, that if you make more than 3 trades per month and use the level II quotes, you break even. Any more than that and you’re ahead.
As for their disclaimer, if you’re using an online brokerage where YOU control your trades, you had better be comfortable managing your own account regardless of who it’s with.
Good find!
-Grant