This is just a quick note to let you know that ShareBuilder — now owned by Capital One — is reducing their commissions to $6.95/trade for real-time trades effective March 1st. They’re also offering a $100 signup bonus*, though you have to deposit (or transfer in) a minimum of $5k to qualify.
Prior to this change, ShareBuilder Basic customers were paying $9.95/trade and ShareBuilder Advantage customers were paying $7.95/trade. Of course, auto-investment program is still available for $4/trade.
So yes, the new rate for real-time trades is an improvement, and the $100 bonus is quite nice, but you can do better if price is your primary consideration. For example, TradeKing charges $4.95/trade and OptionsHouse charges just $3.95/trade.
Of course, we don’t actively trade stocks. But if we did, we’d most likely stick with Vanguard where Voyager Select customers get $2 trades and Flagship customers get 25 free trades (after which you’ll pay $2/trade).
*Note: To qualify for the $100 bonus, use a link in this post (like this one) or enter Sharebuilder promo code 100LSQ4 when opening your account.
Relevant queries: capital one sharebuider imprvements, sharebuilder real time trade promo codes 2013
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Sharebuilder President Greenshields said on Benzingza about the 30% price cut “we will still maintain our margins.”
Greenshields won’t say exactly how the company is able to sustain its margins. “It’s trade secrets that we’ll never talk about because they’re operational efficiencies that we built from the ground up, not unlike the formula for Coke,” he said.
We remember the make it up on volume stories of the dot com era. Good luck!