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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.
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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:

Type Quantity Security P Type Term Price Other
Buy 30 HOTELS MGMT INC ADR (HMIN) Mkt Day Mkt
Status Description Date & Time Quantity Price Commission
/Fee
Placed Buy 30 HMIN Mkt 09/30/10 11:55 EDT 30.00 19.99
Executed Buy 30 HMIN Mkt Day 09/30/10 11:55:36 30.00 49.13 19.99

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
https://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

Comments»

1. brent - May 24, 2011

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.

2. Deminvest - May 25, 2011

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

https://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


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