Schwab: Just Say No Accounts*
Finally, a stock brokerage account where you don’t get charged a ton of fees or high commissions.
The claims: (1) Our commission prices start as low as $9.95 (2) Just say no to account service fees.
*MOUSE PRINT: (1) “$9.95 trade pricing is for clients who have $1 million in qualifying household assets or trade at least 30 times a quarter.” (2) “Accounts exempt from account service fees are subject to a minimum balance charge of $30 per quarter for brokerage accounts … [if after notice] … assets remain below… $2500.” [US News, April 3, 2006]
I think Charles Schwab is just saying no to little accounts (under $1 million) with respect to the advertised commission rate, and does not consider a “minimum balance charge” to be an “account service fee.”
I wish there was a law against this kind of crap. Most Americans aren’t smart enough to figure this out on their own. It’s sad that a company like Scottrade with no strings attached pricing would lag behind a fraud like schwab.
Comment by Rob S — September 26, 2006 @ 9:43 amI actually had an account with them (not this kind), and over a year, their rates changed twice. I didn’t trade much and eventually my balance fell under the minimum. It seemed hawkish that they’d increase service fees at that point.
Comment by Jubz — September 26, 2006 @ 4:16 pmIf you want a reputable company that has absolutely no fees other single individual buy/sell commission fees of a flat rate of $7 (i think) go with Scottrade.com
Comment by Chris — September 26, 2006 @ 5:08 pmThink this is bad? Try Wachovia. My wife had an IRA with these folks. $50 annual fee and $29.95 for each trade! Since I was going to use the account for day trades we, naturally, switched to Ameritrade. No fee and $9.95 a trade. On top of it her broker had “suggested” she invest in certain funds over the year. Being the independant type she listened – annual gowth of 3% over 10 years. I’m not an “expert” but could realize these were dogs desined to inflate his wallet. End result? She made a 30% return on this year so far.
Comment by Rick — November 4, 2006 @ 2:20 pmI concure with Chris – I have been using Scottrade for over seven years and my only fee is $7.00 per trade. No size limits or other restrictions. For shares trading for less than $1.00 there is an slight extra fee. Also they pay interest for any cash held in your account.
Comment by Brownie — February 18, 2007 @ 3:35 pm