'Let's see. The interest from BAC on 25k would be $187. The same amount at ETrade for a 4.00% interest would be $1062. There is a difference of $875. That's a lot of $9.99 trades, my friend.'
Totally agree on this one. Not to mention better service and trade execution at ET. What I don't understand is how the CEOs of amtd, et, and sch put out weak statements like 'Oh, this won't affect us much and we won't lower our prices.' I thought they care about their investors? IMO, this desperation move by BAC should have hit BAC stock instead of the brokerage stocks.
Don't forget the $50 annual maintenance fee ontop of the $875 interest. I am starting to smell nickle & dime fees if you ask me.
Nothing is free. On the surface, whenever you hear about free trading, you do get intrigued. But the devil is always in the detail.
Lillian is correct that this is a non-event. I would like to see ET get acquired by Schwab. I think that this would really help both companies.
I now believe that it is helpful to have some local branches. Employees with their checks being direct deposited don't need branches. Business owners who have more flexibility with their time, I believe, trade more. They need a place to actually take their deposits and they would like to goto one place. I didn't believe that branches were useful in the past. Now I think they can provide some utility.