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John,
Before you rush off to change firms I very much suspect you will see the same policy industry wide shortly. Following your post I checked policy at a couple of other places and learned that what you describe is pretty much "expected" to become the industry norm .. with a couple of minor exceptions:
NYSE Member firms doing business in NYSE stocks Traded on the NYSE, must bundle order for commissions.
NASDAQ trades done on ECN will most likely continue to get bundling treatment.
I would get a clear picture from a firm , before I moved, as to would there current policy continue .. and for how long?
Payment for order flow has declined to almost nothing and trading in 1/16"s is also impacting profitability. Sometime around the middle of 2000 decimal trading hits and I would expect commissions to actually increase on a net basis over the next year or so.
I personally fear we will look back at the last couple of years very fondly ... very soon.
G.John Boggio wrote:
> RTer's and FTer's,
>
> Just thought I would give you a follow-up on my conversation with a Fidelity Spartan Brokerage Supervisor regarding a possible wavier of their new commission policy (see below for more details). To make a long story short, I had an amicable conversation in which I informed him that I would like to have their new policy waved. This was based on the fact that YTD I have generated over $17,000 in 'on-line' commission and over $60,000 since 1997. He indicated that he saw my frequency of trading and appreciated my business BUT said that he could not do anything to help.
>
> I indicated that this change will require me to look elsewhere for brokerage and mutual fund services and thus would be closing out some rather large accounts. I also indicated that I have been in contact with several of you (from these two forums) who have also expressed disappointment with their new policy. Without trying to speak for others, I said that the impression that I got from those conversations was that they too would be looking to close their accounts with Fidelity. He said, "well, we appreciate your business but if that is what you need to do....". The conversation ended shortly thereafter and now I am getting back to you.
>
> So, it looks like I will begin my search for a new brokerage company.
>
> Out out curiosity, does anyone know if there is a company that offers on-line trading via their own software RATHER than using the web. This would be similar to Fidelity's Fox+ software vs their Webexpress. I know a lot of you did not like their Fox+ program but, in my opinion, it was a hell of a lot better than their slow and cumbersome Webexpress. I guess I will be checking with all the big boys: Vanguard, Scudder, DLJ, Datek, Brown, and Schwab etc. Any suggestion?
>
> Thanks,
> John Boggio
>
> At 06:13 PM 5/3/99 -0400, G.John Boggio wrote:
> >Rter's and Fter's,
> >
> > Is anyone aware of Fidelity's new STOCK commission schedule in which they
> >are now charging for every lot bot or sold even if you are below the 1000
> >share limit. Apparently, this new rule went into effect on 4/27/99. It no
> >longer allows for multiply trades on the same side, on the same day.
> >Example, if you bot 500 shares of DELL at 41.50 and then bot another 500 at
> >41.00 an hour later, you will now be charged 2 commission fees. This even
> >applies to "active" on-line traders...which I am. Normally, such a trade
> >would run me a total of $14.95 for the day for the 1000 shares.
> >
> > Anyhow, when I spoke with Fidelity today about a trade I placed the other
> >day, I was informed of this new rule. I have now asked for a supervisor to
> >contact me regarding a wavier of this newly proposed fee, based on the fact
> >that I have already generated commissions of nearly $17,000 ytd and over
> >$26,000 last year. Am I alone in this fight or are others in the same boat?
> >
> > Finally, the Fid. representative also told me that they sent a notice of
> >this new rule to their commission schedule several months ago. Well, I
> >never saw a thing, did you? Also, if you go to their website and check out
> >their commission schedule, it does not say anything either.
> >
> >
> >http://personal351.fidelity.com/accounts/services/content/socommissions.html
> >.tvsr
> >
> >Any info would be greatly appreciated,
> >John Boggio
> >
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