Does Etrade lie when they promise $9.99 on their homepage? Is Etrade’s real commission $19.99? Why did they charge me such outrageous fee? October 18, 2010
Posted by deminvest in investment.Tags: etrade
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fake transparent showcase for a company that lies to its customers
Something strange in the neighborhood. On Etrade website, they advertise $9.99 flat commission for stock trades. Unfortunately they charged me twice as much on this simple buy order:
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And here again on this sell order:
| Order Type | Quantity | Security | Price Type | Term | Price | Other Order Details |
|---|---|---|---|---|---|---|
| Sell | 156 | RED HAT INC COM (RHT) | T-Stop $ | GT 60 | 36.24 | Initial Stop Price: 36.24 Trailing Stop Parameter: 1 point(s) below bid |
| Transaction Status | Order Description | Date & Time | Quantity | Price Executed |
Commission /Fee |
|---|---|---|---|---|---|
| Order Placed | Sell 156 RHT T-Stop $ GT 60 | 09/08/10 02:47:54 PM EDT | 156.00 | – | 19.99 |
| Executed | Sell 156 RHT T-Stop $ GT 60 | 09/14/10 09:32:45 AM EDT | 156.00 | 38.07 | 19.99 |
I wrote them this nice message:
I don’t understand why you charged $19.99 commissions fee on this order.
On your website it says standard commission is $9.99.
I executed two orders this fall. You charged me 19.99 for each order, twice as much as I expected.
Please let me know if it was a mistake, or if you plan to continue charging me twice as much as you avertise. In that case my next inquiry will be about how to move all securities to another platform.
I blogged on this incident and I’ll be happy to publish your kind answer
http://deminvest.wordpress.com/2010/10/18/is-etrades-real-commission-19-99-do-they-lie-when-they-promise-9-99-on-their-homepage/
Sincerely
Deminvest
Did you ever get any resolution as to why Etrade was charging you $19.99 per trade? Sounds like they were charging you mutual fund fees in lieu of stock trade commissions.
No Brent,
no mistake, just an organized ripoff on international customers. This was the mail they sent me, answering to my complaint:
Topic: Trade Inquiry
Account: XXXX-8XXX
Message:
Dear Giacomo,
thank you for your message regarding commission fee.
This commission fee schedule applies to your account.
E*TRADE Securities Trading Fees and Commissions
International Customers (non-US customers on the US-International Site):
1.)All stock orders of 2000 or fewer shares (in linked accounts)
$19.99
2.)All foreign stock orders
$19.99
3.)Broker-assisted trades
$45.00 + regular commission
4.)ECN Fee
$0.005 per share + applicable commission
5.)Option orders
(complex orders are only subject to one base fee, but the per-contract fee will apply to all legs)
$19.99 + $1.75 per contract
6.)Option Exercise/Assignments
$19.99
Thank you for doing business with E*TRADE!
Have questions on a 401(k) rollover or how to invest your retirement assets? Learn more now
For future inquiries you can visit the Online Service Center, it is the fast & easy way to get answers to all of your questions. You can also reach E*TRADE by phone at one of the phone numbers located at etrade.com/contactus. As always, your business is most appreciated.
Sincerely,
Glenda D. Velasco
8:30am-5:30pm EST Monday-Friday
1-800-ETRADE-1 (1-800-387-2331)
Financial Service Representative
E*TRADE Securities, LLC
From: GIACOMO
Sent: 10/18/2010 12:02 PM
Subject: Trading & Investing
Topic: Trade Inquiry
Account: XXXX-8XXX
Message:
I don’t understand why you charged $19.99 commissions fee on this order.
On your website it says standard commission is $9.99.
I executed two orders this fall. You charged me 19.99 for each order, twice as much as I expected.
Please let me know if it was a mistake, or if you plan to continue charging me twice as much as you avertise. In that case my next inquiry will be about how to move all securities to another platform.
I blogged on this incident and I’ll be happy to publish your kind answer
http://deminvest.wordpress.com/2010/10/18/is-etrades-real-commission-19-99-do-they-lie-when-they-promise-9-99-on-their-homepage/
Sincerely
Giacomo