From: Gregory Sullivan (sullivan@blaze.cs.jhu.edu)
Date: Sun Nov 30 1997 - 19:33:39 MST
List readers are familiar with the deflation in computer and data network
prices. These price reductions have been moving through the economy with,
in some cases, vertiginous results. A powerful example of the
"destructive and creative" forces of the market is found in the changing
cost of performing stock trades. Why pay $672.59 to perform a stock trade
when you can pay $7.95? See the table below.
BusinessWeek article (Dec 8 97) available on the web for a limited time.
ONLINE TRADING: DO I HEAR TWO BITS A TRADE?
A price war is slashing commission rates
http://www.businessweek.com/1997/49/b3556135.htm
FULL SERVICE:
AVERAGE COMMISSION $116.90 $672.59
DISCOUNT BROKERAGE:
AVERAGE COMMISSION 66.09 145.05
ONLINE RETAIL BROKERAGE**:
DLJDIRECT 20.00 60.00
E*TRADE 14.95*** 74.95***
FIDELITY BROKERAGE 14.95 14.95
DATEK SECURITIES 9.99 9.99
AMERITRADE 8.00 8.00
SURETRADE 7.95 7.95
**INTERNET TRADES
***ACTIVE TRADERS
DATA: CREDIT SUISSE FIRST BOSTON CORP., COMPANIES
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