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December 21, 2006
Will Trade for Cash
I'm a buy and hold investor. Although I annually rebalance my 401(k) accounts and tweak my investment choices, I rarely make a move in my taxable account. In fact, Fidelity (where I have a brokerage account) barely makes a dime off me each year since they don't charge account maintenance fees. Part of it is laziness, but a bigger part is that I just don't like paying trading fees--it just eats away at my returns.
So Bank of America's new $0 commission for trades intrigues a money miser like me. The dirt: Anybody who maintains a $25,000 minimum balance in their BofA accounts (that includes, savings, checking, etc.) gets 30 free trades a month. That's not a bad deal. Before the BofA deal, regular investors had to fork up nearly $5.
Okay, so I admit, even free trades won't tempt me to start buying and selling stocks on a regular basis any time soon. But hey if an online brokerage offers less-than-free trades, I might open an account.
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In theory free trading sounds great. But the system is 100 years old and designed for people who don;t actually trade. I tried it for a week and closed the account.
Posted by: spounce at December 22, 2006 10:15 AM