Devil in the Details?

from the Read-before-you-sign dept

The Standard’s Grok reported that Merrill’s new e-brokerage foray would include an “all you can trade” deal for $1500/year. This is novel — potentially a day-trader’s paradise. But a little looking and indeed it is not quite as billed: they’ll charge you either per trade or “pricing based on household assets” for unlimited trading (1% of your balance of equity & mutual funds, 30bp of cash — per month; annual minimum of $1500). Though this seems to smack of the “load ’em up on fees” culture of the old brokerage days, there is still potential for day traders to exploit this new pricing model. Just take any buy & hold stocks out of your account by asking for stock certs, move excess cash into another brokerage account, etc. and trade away!

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