If you are with E-trade and you are looking to get lower commissions, take these simple steps to save $2.00 a trade. If you haven’t been living under a rock, you most likely know that E-trade is not the most competitive commission rate broker out there at $9.99 a trade (until 150+ trades a quarter.) With multiple companies offering under $5 commissions (Tradeking and Optionshouse for example), it can be hard to justify dropping $9.99 a trade. But here is how you can lower those commission fees.
Step #1: Call E-trade and tell them you are considering transferring and was told by the brokerage firm you are transferring to that you would have to contact E-trade to find out the actual fee amount for the transfer. The representative will most likely tell you that it is $60 flat fee to transfer out.
Step #2: Wait for the representative to ask you why you are transferring.
Step #3: Tell them that you found multiple brokerage firms that offer much better rates and although you like E-trade, you simply cannot afford it since you are a frequent trader.
Step #4: Wait for them to offer you $7.99 or ask if there is a way they could meet the other brokerage fees (this will prompt them to offer you $7.99 a trade).
Step #5: Tell them that although it is higher than the other broker, it should be enough to keep you from leaving. Accept it, and wait a few business days for them to apply it to you account.
That’s it. Your account will now permanently give you commission rates equivalent to as if you were trading 150 trades a quarter ($7.99). Feel bad for asking for this discount? Don’t. E-trade even with this discount is not the most competitive pricing. If you were going to place 150 trades per quarter to obtain that $7.99 price, call anyhow to save yourself $300 worth of commissions.