Brokerage firm Charles Schwab has promised to match any of its competitors' published execution guarantees for active traders using its Trader CT or Street Smart Pro platforms.
In March online broker E*Trade Securities promised investors a two-second trade execution guarantee on most blue chip stocks, beating the then industry benchmark of five seconds. Prior to this, E*Trade had offered nine-second guarantees following Ameritrade's pledge to execute stock trades within 10 seconds in 2002.
Andy Gill, SVP of Schwab's active trader enterprise says brokers keep trying to outdo each other with execution guarantees but claims the new match guarantee will put an end to this competition.
"Rether than try to one-up the competition, Schwab has decided to simply match any execution guarantees in the marketplace," says Gill.
The offer is available to users of Schwab's Trader CT dealing platform and premier trading system Street Smart Pro. Schwab is also launching a print and online advertising campaign promoting its execution guarantee match at the Chicago Traders Expo.
Last month, the broker announced a flat $9.95 commission for its Schwab Trader CT clients executing online equity orders of any size.