Horning in; facing Internet threat, Merrill to offer trading online for low fees; customers will get a choice: $29.95 rate, full service or a no-commission plan; a watershed on Wall Street
Article Abstract:
Merrill Lynch & Co. is expected to announce plans to begin offering online stock trading services. Beginning in December, the firm will offer a basic service with a base commission of $29.95 per transaction for trades up to 1,000 shares, matching the price of fast-growing rival Charles Schwab Corp. Although the prices of some online competitors are considerably less per transaction, Merrill believes investors will be willing to pay the additional charges for some additional services, such as free research reports, and the firm's solid reputation. Merrill is also expected to offer another option that will permit unlimited free trading for an annual account fee equal to around 0.2% to 1% of the account's assets, with a minimum fee of $1,500 a year. This service will be available through either a broker, online or over the phone with an order taker. The change in strategy comes as the nation's largest brokerage firm has finally come to terms with how much business online trading is taking away from traditional brokers. Discount broker Charles Schwab Corp. was quick to recognize the future for online trading and switched its emphasis from branch-office and phone-based order taking to that of online trading. The Internet now accounts for 30% to 35% of all stock trading by individuals.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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Merrill Lynch quits its computer bashing
Article Abstract:
Merrill Lynch, a full-service brokerage house, faces a major challenge as it attempts to develop a new advertising strategy that will accommodate its plans to offer online trading services while continuing to highlight the importance of human achievement. Having promoted an image of itself in past ads as a traditional brokerage firm that values human beings over computers, Merrill Lynch is now working with its advertising agency, WPP Group's J. Walter Thompson, to present itself as a more integrated company where both human beings and computers are critical to its success.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
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