Ameritrade Unveils Lower Fees for Options Trading; $8 Cost per Trade Among Lowest Options Commission in the Brokerage Industry.Business Editors 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)--Sept. 28, 2000 Ameritrade, Inc., one of the world's leading providers of online brokerage services, today announced it will lower options commission fees for Internet market orders to $8 plus $1.75 per contract. The new commission schedule will take effect October 3, 2000, and will be available to all new and existing Ameritrade customers. The new lower commission is among the lowest options commission in the brokerage industry. Under the new pricing arrangement, the commission fee for Internet market orders will be $8 plus $1.75 per contract, down from $25 plus $1.75. Commission fees for options market orders entered via the Ameritrade, Inc. Interactive Voice Response (IVR (Interactive Voice Response) An automated telephone information system that speaks to the caller with a combination of fixed voice menus and data extracted from databases in real time. ) system or through a broker will also be lowered. Limit orders, stop and stop limit orders are just $5 more. Additionally, the $29 minimum options commission has been eliminated. "With the new lower commission, Ameritrade offers an outstanding value to options traders Traders Individuals who take positions in securities and their derivatives with the objective of making profits. Traders can make markets by trading the flow. When they do this, their objective is to earn the bid/ask spread. ," said Jack McDonnell, president of Ameritrade, Inc. "Ameritrade continues to drive toward best-in-class technology, features and customer experience." Ameritrade provides educational resources to assist customers in understanding various types of investment vehicles and their inherent risks, including options trading. A section in Ameritrade's Education Center provides basic information on options trading, located at www.ameritrade.com. In the near future, the company plans to unveil many new enhancements to its current options offerings that will provide even greater ease of use to its customers. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. McDonnell, the new lower commission for options trading is made possible by the company's ever-increasing operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. . "We have proven we can operate extremely efficiently. Doing so enables us to provide investment vehicles at lower commissions to our customers while continuing the high level of service our customers have come to enjoy and expect from Ameritrade," he said. 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 of the online brokerage industry with a 25-year history of providing a customer-focused approach to brokerage services. The company provides brokerage and clearing services to self-directed individual consumer investors and to financial institutions through its subsidiaries. Ameritrade, Inc. (www.ameritrade.com), is a leading online brokerage firm and received Money magazine's highest five-star rating for overall performance(a). Ameritrade, Inc sits comfortably at the top of the Keynote keynote /key·note/ (ke´not) in homeopathy, the characteristic property of a drug that indicates its use in treating a similar symptom of disease. Consumer 40 Internet Performance Index(b), which tracks homepage loading speed. Other subsidiaries of Ameritrade Holding include: Accutrade, Inc. (www.accutrade.com), a brokerage delivering superior levels of personal service and support to its clients; AmeriVest, Inc. (www.amerivestinc.com), a provider of third-party brokerage services and other financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. to commercial banks, credit unions and thrift institutions Thrift institution An organization formed as a depository for primarily consumer savings. Savings and loan associations and savings banks are thrift institutions. ; and Advanced Clearing, Inc. (www.advancedclearing.com), a securities clearing firm providing clearing services to each subsidiary as well as other financial institutions. (a) Best Online Brokers, June 2000 (b) March 19, 2000 - Present |
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