Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
When they announced the no-commission deal, I knew it wouldn't last long, so this is no surprise. I agree that they did not think it through, and early on it was obvious that they were flooded with more accounts, more trades, and more web site traffic than they were prepared to handle. I'm surprised it took them so long to wise up to the day-traders.

The only thing that bothers me now is the fee for limit orders, which I do use. I could go elsewhere and pay more for market orders (which I also use), or just figure that I am setting my limit price to gain a few hundred $, and the $20 fee is worth it. I think it is quite reasonable, though, that they should allow a small number of limit orders for free, and maybe if they hear that enough they will do it. I would give "2-for-1" if they want: 10 free market orders, or 5 free limit orders, or any combination.

I don't think it was "bait and switch", it definitely was an attempt to buy market share (and access by their account reps to these juicy $100K customers, so they can attempt to sell them other Amex products), but I think they probably started out intending to keep their original pricing, and just didn't anticipate things that a company already in the online brokerage business - or an online brokerage customer - would have considered obvious. This might be a reason to knock management's competence, but not their integrity.
Print the post  

Announcements

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.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.