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US Firm Launches New $2.50-A-Trade Online Site January 9, 2007

Posted by notapundit in US News.
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Taking direct aim at the active trader segment of the online brokerage market, Washington, D.C.-based Success Trade Securities on Tuesday unveiled Just2Trade.com, offering $2.50 per-trade commissions and promising faster execution than rivals.

The company also said it will match the lowest margin rates in the market.

The company is targeting the active trader section; those clients who trade dozens or even hundreds of times each month, and exceed the limits of certain special offers from other online firms.

Most recently, in October, Bank of America Corp. (BAC) said that customers who are self-directed investors with combined deposit balances of at least $25,000 will be eligible for 50 commission-free trades per month.

Prior to that, commission had been falling for several years as firms battled for customer accounts amid a rapid industry consolidation. Now, analysts and company executives generally agree that while still contributing to earnings, trading commissions are a less important part of the online firms’ earnings.

Instead, income and revenue based on customer assets and deposits are generating a bigger part of earnings at the big three brokers Charles Schwab Corp. (SCHW), TD Ameritrade Holding Corp. (AMTD) and E-Trade Financial Corp. (ETFC).

Just2Trade is relying on the fact that active traders are looking for the cheapest straight commission and the best services, including low borrowing rates and fast completion trades.

“It is not just about low commissions. Active traders demand quality execution, low margin rates, and high-end trading tools backed by the latest technology to manage their portfolio. We know the experienced investor and this is why we have created Just2Trade.com,” the company said.

The firm also said it will offer tools like free streaming quotes and trend analysis.

The company said it requires traders to have at least two years of investing experience, online experience and a $2,500 minimum balance in their Just2Trade.com account.

By Greg Morcroft

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