Schwab introduces one month of free trades
Charles Schwab existing and new customers will trade for free for the month of March. The offer, which was announced yesterday, will be open to new customers until June. The announcement comes one day after Comsec launched a reduced brokerage service for frequent traders that reduced brokerage to a minimum of $8.15 per trade.
The move by Schwab was anticipated given a similar tactic used by them in the UK that resulted in an increase in customer accounts of approximately 45%. It appears the timing of the offers by Comsec and Schwab are unrelated and therefore do not signal a new round of brokerage fee reductions. While Schwab begin their marketing drive to acquire customers, Comsec are rewarding their more frequent traders with fee reductions which are on offer from a number of other online brokers.