Source: Bank of America
Bank of America today announced that effective immediately, its primary retail brokerage company, Banc of America Investment Services, Inc. (BAI), will offer free ($0) online equity trades for self-directed investors who maintain a combined balance of $25,000 or more in Bank of America, N.A. deposit accounts.
Free ($0) online equity trades at BAI represent the latest opportunity for consumers nationwide to benefit from a broader relationship through Bank of America, with preferred pricing across banking and investment products. Approximately fifty-two million American households, or forty percent, are immediately eligible for this offer based on household assets.
"By introducing free ($0) online equity trading, we are redefining what consumers can expect from a financial institution," said Liam McGee, president, Bank of America Global Consumer & Small Business Bank. "Customers appreciate the simplicity and convenience of using a single trusted financial institution for all their banking and investment needs, and are motivated by the preferred pricing and other rewards it can bring."
Brian Moynihan, president, Bank of America Global Wealth & Investment Management, added, "This move responds to our customers' needs and represents a major step forward in the financial services industry: Bank of America is the first, large-scale institution to take the cost of online equity trades to $0. This is the final step in a multi-decade evolutionary process in the brokerage industry." Moynihan also said, "Our unique size, scale and strength enable us to do this on behalf of our customers, in order to help them more efficiently and cost-effectively manage their families' finances."
McGee continued, "Bank of America seeks to be consumers' first and repeated choice as their financial services needs grow over time. This approach, informed by customer needs and behaviors, is anticipated to generate long-term growth for Bank of America shareholders."
Latest Relationship-Based Offering from Bank of America
Commission free online equity trades is the latest relationship-based offer from Bank of America for its customers. Previous innovations introduced by the Bank of America Consumer & Small Business Bank for customers include free online bill pay, free checking, free remittances to Mexico (SafeSend®) and free online payroll (Business 24/7(TM)).
BAI already offers highly competitive relationship-driven pricing, with online equity trades ranging from $5 - $10 depending on the type of deposit account customers maintain with Bank of America, N.A. With today's development, self-directed individual online investors with a combined balance of $25,000 or more across their Bank of America, N.A. deposit accounts will be able to execute as many as 30 commission free online equity trades per month through BAI. The offering is available immediately in the northeast and expected to roll out nationwide through spring 2007.
Easy, Convenient Account Access
In addition to benefiting from relationship-driven pricing, Bank of America customers also have access to more than 5,700 banking centers and more than 16,700 ATMs, as well as the world's leading online bank and BAI's recognized online brokerage services. With only one ID and password, each one of the nearly 20 million active Bank of America online banking customers can view their financial picture through the Web site and access online banking, bill pay and self-directed brokerage accounts. Through these accounts, customers can make investment choices and take advantage of powerful tools and trading services, including independent investment research and analysis reports on specific companies, in depth-commentary on market performance and trends, and extensive financial and economic news. Portfolio tools such as stock, bond and mutual-funds screeners help customers monitor and manage their investments. And customers can access account information and place trades online or through an automated phone service 24 hours a day, seven days a week.
Commission free online equity trades allow BAI self-directed customers with combined deposit balances of $25,000 or more in Bank of America, N.A. deposit accounts to purchase/sell equities online with no commission charged.