UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: imdajunkman Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: E*Trade's Bond Commissions Date: 12/26/2006 10:01 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
Depending on whether you a former HarrisDirect or BrownCo customer, you will be offered a different commission schedule than E*Trade's other customers (both schedules are listed below).

Worse, you will also be quoted different bond prices. E.g., this morning E*Trade is offering a lot of 5 OR St Hsg munis, the 5's of '19. If you're a regular ET customer, then your price is 102.515. If you're a former Harris/BrownCo customer, then your price is 101.

The obvious solution? Write a limit order under both of those prices at 100 and see if you can get an execution. If you can't, then you didn't want the bonds anyway, because the yield would be too small.

-------------
Bond Commissions (for ET customers)

Auctions $40
Treasury bills $40 ($0 for 20 or more bills)
Treasury bonds, notes, and STRIPS $40 ($0 for 20 or more bonds, notes and/or STRIPS)
Municipal, corporate, and agency bonds $40 ($0 for 10 or more bonds)
CDs $40 ($0 for 10 or more CDs)

1 E*TRADE Securities may act as principal on any fixed-income transaction. When acting as principal, we will add a markup to any purchase, and subtract a markdown from every sale. In addition, there may also be a transaction fee based on the size of the trade. This markup or markdown and any transaction fee will be included in the price quoted to you.



Bond Commissions (for ET customer who were former HD or BC customers)

Maturities of 2 years or less $24.99
Maturities of more than 2 years $44.99 minimum per transaction
US Treasury Issue at Auction $24.99 per transaction
Broker-assisted trades will incur a $40 additional surcharge.
CDs (Maturities of 2 years or less) $24.99 per transaction
CDs (Maturities of more than 2 years) $44.99 per transaction

1 E*TRADE Securities may act as principal and collect a concession on the sale of a new Certificate of Deposit (CD) from the issuer of the certificate.


What they are disclosing to each set of customers are very different things, but that's also typical of the obstacles and hassles to be encountered anywhere. But forewarned is forearmed.

Charlie
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement