Rate Cuts by Brokers and Mutual Funds Make the News

Though “The Electronic Investor” has noticed this trend in the not-too-distant past, it’s good to see other media outlets picking it up.

The Wall Street Journal published an article about cuts in brokerage commission rates over the last few months, saying that heightened competition is driving prices lower.  Subscribers to the Wall Street Journal Online can read the article, “Online Stock Trades
Get Even Cheaper,” by clicking here.

Also of note are recent management fee cuts by mutual funds, as detailed by the LA Times in their article, “Firms Slash Fees as Investors Flock to Low-Cost Portfolios.” You can read that article, after a free “registration” process, by clicking here

Posted by on 07/11 at 10:51 AM

Hi Theresa,

There has never been a better time to be a stock trader; tight bid/asks, instantaneous execution, sophisticated order types, robust charting/search applications, “full disclosure” by corporations, real-time news feeds and yes, lower commissions. It’s still not easy, but technology and regulatory changes have helped level the playing field.

Brokerages firms are using technology to execute, clear, monitor risk and process new accounts. Once the infrastructure is built the fixed costs are relatively low and the variable costs boil down to the advertising cost per new account.

I like the look and feel of the blog. I hope it is going well.

Posted by Pete Stolcers  on  07/24  at  01:29 PM
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