Ameritrade Further Streamlines Operations While Simplifying Customer Experience.Business Editors & Technology Writers OMAHA Omaha, city, United States Omaha (ō`məhä, –hô), city (1990 pop. 335,795), seat of Douglas co., E Nebr., on the west bank of the Missouri River; inc. 1857. , Neb.--(BUSINESS WIRE)--April 3, 2001 Ameritrade Inc. adopts electronic delivery of statements and confirmations as standard offering Ameritrade, Inc., a subsidiary of Ameritrade Holding Corporation, a brokerage industry technology leader, today announced further efforts to streamline operations and improve the customer experience through the use of technology. The Company is introducing standard electronic delivery of statements and trade confirmations. Customers will receive statements and trade confirmations via e-mail, eliminating the paperwork of traditional paper filings and customer mailings. Customers will have the choice of requesting statements and confirmations to be mailed to them. There will be a $2 fee for each paper confirmation. This new pricing takes effect July July: see month. 1, 2001. Customers may sign up now for the electronic delivery of statements and confirmations by clicking on the "account services" tab and then "electronic confirmations" on the Ameritrade.com site. "We've we've Contraction of we have. we've have observed that our customers overwhelmingly embrace our technology enhancements," said Anne Nelson, vice president of marketing and product development, Ameritrade Holding Corporation. "Ameritrade is now delivering statements and confirmations electronically to simplify customers' accounting, record-keeping and management of their investments. With one of the lowest commission schedules available, Ameritrade continues to introduce technology-based services that improve ease of use. Electronic delivery joins real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. balances, and express account openings as yet another milestone in meeting the needs of our customers." In line with actions previously taken by online brokerages, Ameritrade also will be introducing an Account Maintenance fee of $15 per quarter for accounts fitting the following criteria: less than $2,000 in total assets or fewer than four trades executed during the previous six months; and having been open for at least six months. Ameritrade customers can avoid the account maintenance fee by maintaining an account balance of at least $2,000, or by executing four or more trades with that account within the previous six months. To encourage long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against and cultivate cul·ti·vate tr.v. cul·ti·vat·ed, cul·ti·vat·ing, cul·ti·vates 1. a. To improve and prepare (land), as by plowing or fertilizing, for raising crops; till. b. customer relationships, all retirement and beneficiary beneficiary Person or entity (e.g., a charity or estate) that receives a benefit from something (e.g., a trust, life-insurance policy, or contract). A primary beneficiary receives proceeds from a trust or insurance policy before any other. accounts are exempt from the fee. Projected Financial Impact Ameritrade's standard electronic delivery of statements and trade confirmations will reduce expenses incurred from traditional customer mailings. "Our electronic delivery is a more efficient choice for our customers and our business," said Nelson. "We are reducing the friction for customers while we further streamline our operations and reduce unnecessary expenses." The Account Maintenance fee is structured to encourage lower balance and low activity customers to activate their accounts and/or increase asset size. "While Ameritrade has utilized a $500 promotional opening balance to encourage usage of our services, our policy regarding a $2,000 minimum balance is consistent with our standard account opening amount," said Nelson. "The new quarterly maintenance fee is necessary to offset the costs to the company associated with carrying the lower balance and inactive accounts inactive account A brokerage account in which few transactions take place. Some brokerage firms levy a fee on accounts in which securities are deposited but no activity occurs during a specified time. . Further, this action is consistent with our objectives of diversifying revenue sources and increasing assets per account." Ameritrade will be updating the current projections to represent the impact of increased revenue forecasts and will disclose further financial information during its earnings release on April 24. About Ameritrade Holding Corporation (Nasdaq:AMTD AMTD Arithmetic Mean Temperature Difference AMTD Automatic Magnetic Tape Distribution AMTD Affordability and Manufacturing Technology Demonstration ) Ameritrade Holding Corporation (www.amtd.com) is a pioneer in the online brokerage industry with a 25-year history of providing customers a self-directed approach to brokerage services. The award-winning Company, through its broker/dealer subsidiaries, provides brokerage and clearing services to self-directed individual consumer investors and to financial institutions. This document contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding future events or the future performance of the company. Various factors could cause actual results to differ materially from those anticipated. Readers of this document are advised to check the documents filed by the company with the Securities & Exchange Commission, including Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and 10-Q for descriptions of risks and uncertainties related to forward-looking statements. |
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