View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
November 11, 1997updated 03 Sep 2016 1:04pm


By CBR Staff Writer

Shares of online trading house E*Trade Group Inc were hammered again Tuesday, falling $2.75, or 9.4%, to $26.50 amid increased pricing pressure from competitors. Tuesday’s fall compounded the damage done on Monday, when E*Trade sank $3.50, or 8%. Other trading firms such as Ameritrade, Quick & Reilly and Suretrade have been steadily undercutting E*Trade’s standard $15 transaction fee, with the latest prices congregating at around $8 per trade. In addition, top-tier firms such as Fidelity Investments are entering the online trading arena. Although analysts at Deutsche Morgan Grenfell figure that online trading prices have declined 40% in the past year, E*Trade has maintained its $15 fee, which DMG sees as becoming the midpoint in a market that is segmenting into low, middle and high ends. Although pricing pressures may have shaken Wall Street, E*Trade appears to have lost no steam in signing new accounts, bagging nearly 1,200 accounts with $32m in assets two weeks ago on the day Wall Street’s record falls. More announcements are expected that will accelerate account growth even more. The company announced on Tuesday that it has completed its first acquisition (see related story). Last week, the company launched its online mutual fund trading service (CI No 3,282). DMG sees a $30 price as attractive before the announcements become public.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.