Upcoming AWS Coverage on Leucadia National Post-Earnings Results
LONDON, UK / ACCESSWIRE / March 3, 2017 / Active Wall St. blog coverage looks at the headline from online brokerage and financial services firm, ETRADE Financial Corp. (NASDAQ: ETFC) as the Company announced on March 02, 2017, that it is reducing its trade commissions and launched a new active trading program with a new pricing tier for its customers. Register with us now for your free membership and blog access at:
One of ETRADE Financial's competitors within the Investment Brokerage - National space, Leucadia National Corp. (NYSE: LUK), reported on February 27, 2017, its financial results for the three and twelve month periods ended December 31, 2016. AWS will be initiating a research report on Leucadia National in the coming days.
Today, AWS is promoting its blog coverage on ETFC; touching on LUK. Get all of our free blog coverage and more by clicking on the link below:
About E*Trade's new trading commissions and new active trading program
The new base rate for trades for all its customers will be $6.95 per trade, which is lower than the current base rates of $9.99 per trade. The Company has introduced a new active trading program tier with a new pricing strategy wherein its customers could execute 30 plus trades in a given quarter. The new trading tier replaces the earlier active trading tier of 150+ trades per quarter. The commissions for the new active trading program will be $4.95 per trade and the commission for options will be $0.50 per options contract which has been reduced from the earlier rate of $0.75 per options contract. The new base rates and active trader commissions will be effective from March 13, 2017.
Commenting on the introduction of the new rates, Karl Roessner CEO of E*Trade said: "While we know that an exceptional customer experience is far more important to traders and investors than price, with our new commission structure we are able to reward our most active equity and derivative traders and investors, while at the same time providing exceptional value to all who call E*TRADE home."
Timing of E*Trade's decision and current Broker Price War
An all-out pricing war seems to have swept the online brokerage businesses in the last few days. The war was triggered by the Charles Schwab Corp. when it announced the reduction of commission in early February 2017, where its standard online equity and ETF (exchange traded funds) trade commission was slashed from $8.95 to $6.952 per trade. Later on, Fidelity Investments announced on February 28, 2017, that it was lowering its online brokerage and trade commissions from $7.95 to $4.95 per trade for trading on its platform in US based stocks and exchange-traded funds. Fidelity's idea was to attract maximum number of customers by offering the cheapest services compared to is competitors. Within a few hours of Fidelity's announcement, Charles Schwab Corp.'s reduced its fees to match that of Fidelity. Earlier on February 24, 2017, The Vanguard Group cut fees on 68 mutual fund and ETF shares. On March 01, 2017, TD Ameritrade Holding Corporation cut its online equity and ETF trade commissions from $9.99 to $6.95. E*Trade's is the latest player to join the bandwagon with its announcement to reduce its commissions.
The reason for the online trading Companies to lower commissions is understandable as investors have been investing in mutual funds and ETFs that charge lower fees. According to a report by ETFGI, an independent research and consultancy firm specializing in global ETF/ETP (Exchange traded fund /Exchange-traded products) ecosystem, assets invested in ETFs/ETPs listed in the US reached $2.641 trillion at the end January 2017. ETFGI's also reported that as on end of January 2017, there were 1,984 ETFs/ETPs in US, with assets of over $2.641 trillion, from 107 providers listed on 3 exchanges.
Lowering of fees as a strategy may work in the short-run but the question is whether this is sustainable in the long-run. New entrant in this sector - Robinhood Financial, LLC seems to think that paying for online trades should be a thing of the past. Robinhood's mission is to democratize access to the financial markets and they charge $0 commissions on the trades made on its platform.
Although the lowering of commissions is lucrative to customers of the online trading Companies, the resulting lower earnings, lower profits, and a lower return for its investors is a cause for concern. Growing customer awareness also means that apart from low cost of trade they are also looking at aspects like brokerage firm's trading platform, trade execution, stock research, and investor education offerings, etc.
At the close of trading session on Thursday, March 02, 2017, ETRADE Financial's share price finished the trading session at $35.03, slipping 3.23%. A total volume of 5.28 million shares exchanged hands, which was higher than the 3 months average volume of 3.37 million shares. The stock has soared 32.49% and 40.18% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 1.10%. The stock is trading at a PE ratio of 17.72 and currently has a market cap of $9.66 billion.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email email@example.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active Wall Street