Bank of America cuts online trading fees

Source: Bank of America

Banc of America Investment Services, Inc. (BAI), Bank of America's primary retail brokerage affiliate, today announced that effective immediately, it is establishing a new pricing structure for online equity trades that will allow self-directed brokerage customers to benefit from banking relationships they may have with Bank of America.

Under the new structure, all Bank of America personal checking account holders will be able to perform online self-directed equity transactions for either $7.00 or $10.00 per trade, depending on the type of checking account they hold. In addition, online equity trades will be reduced to $5.00 per trade for clients of The Private Bank of Bank of America and Bank of America Premier Banking, which provide wealth management services for the company's high net worth and affluent clients respectively.

Customers who only have a BAI self-directed brokerage relationship will receive online equity trades for $14.00 per trade, reduced from $19.95, which had previously been the cost for a BAI online equity trade for all customers. Also, customers eligible for the Bank of America relationship pricing discount will have their semi-annual BAI account maintenance fee and, if applicable, annual BAI IRA custodial fee waived.

"As an organization, Bank of America and its affiliates are focused less on any individual transaction and more on the value of long-term, comprehensive relationships where possible. The new BAI pricing structure is designed around this concept," said Tim Maloney, president and chief executive officer of BAI. "This move toward highly competitive relationship-based pricing reflects Bank of America and its affiliates' commitment to addressing the total financial well-being of our clients and encouraging them to think holistically about this important element of their lives."

In discussing the new pricing, BAI Direct Brokerage Strategist Jim Goodwin explained that BAI is striving to offer competitively priced online trades at every point on the client relationship continuum. "We recognize that each self-directed customer has a different set of financial needs, but all deserve the same support from their brokerage firm: empowering tools to help make investment decisions, execution and ease of use - all at a reasonable price."

Goodwin noted that in addition to benefiting from the new relationship- based pricing, BAI's self-directed customers who use Bank of America Online Banking can access and transfer funds between their bank and brokerage accounts with a single login. Further, BAI self-directed customers will continue to have access to educational content and research capabilities, as well as other financial tools to help them make more informed investment decisions.

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